IPO Details
Bidding Dates
30 Dec '24 - 01 Jan '25
Minimum Investment
₹14,835/ 1 Lot (69 Shares)
Price Range
₹204 - ₹215
Maximum Investment
₹1,92,855/ 13 Lots (897 Shares)
Retail Discount
To be announced
Issue Size
₹260.15 crore
Investor category and sub category
Retail Individual Investors | Non-Institutional Investors | Qualified Institutional Buyers (QIB) |Indo Farm Equipment IPO Dates
Important dates with respect to IPO allotment and listing
IPO Opening Date
Dec 30, 2024
IPO Closing Date
Jan 1, 2025
Basis of Allotment
Jan 2, 2025
Initiation of Refunds
Jan 5, 2025
IPO Listing Date
Jan 6, 2025
Indo Farm Equipment IPO Subscription Details
| Date | QIB | NII | Retail | Total |
|---|---|---|---|---|
Day 1Dec 30, 2025 |
8.1 | 28.68 | 18.82 | 17.87 |
Day 2Dec 31, 2024 |
11.96 | 132.03 | 46.07 | 54.74 |
Day 3Jan 1, 2025 |
142.49 | 454.91 | 89.38 | 182.88 |
About Indo Farm Equipment IPO
Indo Farm Equipment IPO is book-built issue of ₹260.15 crore through a combination of fresh issue and offer for sale. The fresh issue comprises 0.86 crore shares amounting to ₹184.90 crore, while the offer for sale includes 0.35 crore shares worth ₹75.25 crore.
The IPO subscription opens on December 31, 2024, and closes on January 2, 2025. The allotment date is January 3, 2025, with shares expected to be listed on BSE and NSE on January 7, 2025. The price band for the issue is ₹204 to ₹215 per share, with a minimum lot size of 69 shares. Retail investors must invest at least ₹14,835, while sNII investors require 14 lots, equaling ₹2,07,690. For bNII investors, the minimum investment is 68 lots or ₹10,08,780.
Aryaman Financial Services Limited is the book-running lead manager for this IPO, and Mas Services Limited is the appointed registrar. The IPO offers an opportunity to invest in a prominent name in the agricultural equipment sector, with a clear focus on expansion and market penetration.
Industry Outlook
- The global tractor market is expected to grow from USD 84.80 billion in 2024 to USD 114.5 billion by 2029, at a CAGR of 5.90%. Tractors dominate the agricultural machinery segment, holding 86.9% of the market share, which highlights the demand for mechanised farming equipment globally.
- The global agricultural equipment market is projected to expand from USD 180.81 billion in 2023 to USD 296.61 billion by 2030, growing at a CAGR of 7.3%. Contract farming and precision farming techniques are driving the adoption of advanced agricultural machinery.
Indo Farm Equipment IPO Objectives
The company will use the proceeds of the issue for the following objects:
- The funds will be used for setting up a dedicated unit to enhance pick-and-carry crane production, catering to rising market demand.
- A portion of the proceeds will be used for repayment or partial pre-payment of existing company borrowings
- A portion of the proceeds will be used for investing into its subsidiary, Barota Finance Ltd.
- The remaining funds will be utilised for general corporate purposes.
About Indo Farm Equipment Limited
Established in 1994, Indo Farm Equipment Limited boasts a rich history spanning over 2 decades as a fully integrated manufacturer of top-tier Tractors, Pick & Carry Cranes, and an array of farm equipment, including Harvester Combines and Rotavators, along with their associated spare parts and components.
The company's product line extends to global markets, with a sales distribution of 90% within the domestic market and 10% in exports over the last 3 fiscal years. The company's manufacturing facilities, accredited with ISO 9001:2015 certification, sprawl across 1,27,840 square metres of industrial land situated in Baddi, Himachal Pradesh. This extensive setup encompasses a dedicated foundry unit, machine shop, fabrication and assembly units for tractors, pick and carry cranes, and other equipment.
Indo Farm Equipment Limited's manufacturing infrastructure is fully equipped with induction furnaces, pneumatic molding machines, automatic molding lines, a sand plant, a comprehensive metallurgy and sand testing laboratory, machining center, gear shop, press shop, fabrication shop, paint shop, assembly unit, quality room, and utility room.
The products are marketed and distributed through a network of more than 140 dealers across various states, including Punjab, Haryana, Uttar Pradesh, Maharashtra, Gujarat, and Rajasthan. Over the years, a comprehensive integrated ecosystem has been developed to ensure the provision of high-quality products and financial support to customers.
How To Check the Allotment Status of the Indo Farm Equipment IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for an Indo Farm Equipment IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Indo Farm Equipment IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Indo Farm Equipment Limited
Registered office: SCO 859 N.A.C Manimajra Kalka Road Chandigarh 160101, India
Phone: +91 172-2730060
E-mail: compliance@indofarm.in
Indo Farm Equipment IPO Reservation
|
Investor Category |
Shares Offered |
|
QIB Shares Offered |
Not more than 50% of the Net Issue |
|
Retail Shares Offered |
Not less than 35% of the Net Issue |
|
NII (HNI) Shares Offered |
Not less than 15% of the Net Issue |
Indo Farm Equipment IPO Lot Size Details
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
69 |
₹14,835 |
|
Retail (Max) |
13 |
897 |
₹1,92,855 |
|
S-HNI (Min) |
14 |
966 |
₹2,07,690 |
|
S-HNI (Max) |
67 |
4,623 |
₹9,93,945 |
|
B-HNI (Min) |
68 |
4,692 |
₹10,08,780 |
Indo Farm Equipment IPO Promoter Holding
The company's Promoters are Ranbir Singh Khadwalia and Sunita Saini.
|
Share Holding Pre Issue |
93.45% |
|
Share Holding Post Issue |
69.44% |
Key Performance Indicators for Indo Farm Equipment IPO
As of March 31, 2024, the KPIs of Indo Farm Equipment
|
KPI |
Values |
|
ROE |
5.13% |
|
ROCE |
8.96% |
|
Debt/Equity |
0.01 |
|
RoNW |
4.92% |
|
PAT Margin |
4.16 |
|
Price to Book Value |
2.55 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
P/E (x) |
54.39 |
105.25 |
|
EPS (₹) |
3.95 |
2.04 |
Note: The Pre-IPO EPS is derived using the pre-issue shareholding as of the RHP date and the latest financial year earnings as of March 31, 2024. The Post-Issue EPS is calculated based on the post-issue shareholding and the annualized earnings for the quarter ending June 30, 2024, as provided in the RHP.
Indo Farm Equipment IPO Prospectus
Indo Farm Equipment IPO Registrar and Lead Managers
Indo Farm Equipment IPO Lead Managers
Aryaman Financial Services Limited
Registrar for Indo Farm Equipment IPO
Mas Services Limited
- Contact Number: (011) 2610 4142
- Email Address: ipo@masserv.com
Website: Indo Farm Equipment IPO Registrar
Financial Performance of Indo Farm Equipment Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Revenue from Operation (in ₹ million) | 3,752.32 | 3,707.59 | 3,520.84 |
| Profit After Tax (PAT) (in ₹ million) | 155.95 | 153.72 | 137.19 |
| Return on Equity (“RoE”) (%) | 5.13 | 5.44 | 5.12 |
| Cash and cash equivalents (in ₹ million) | 140.56 | 17.59 | 19.48 |
| Total Borrowings (in ₹ million) | 2,705.39 | 2,806.53 | 2,750.01 |
| Return on Capital Employed (RoCE) (%) | 8.96 | 8.84 | 7.96 |
| Net Debt / EBITDA Ratio (x) | 4.10 | 4.75 | 5.24 |
Know before investing
Strengths
7-
Indo Farm Equipment Limited operates an ISO 9001:2015 certified facility spanning 127,840 sq. meters.
-
Focused on niche Pick & Carry Crane manufacturing with limited global competition.
-
Indo Farm exports tractors to over 30 countries, contributing 7% of sales.
-
Manufacturing tractors ranging from 16 HP to 110 HP for global markets.
-
Plans to expand the dealer network from 159 to over 500 in three years.
-
Debt reduction of ₹500 million will strengthen the debt-to-equity ratio.
-
Raising equity capital to scale operations and capitalise NBFC subsidiary Barota Finance.
Risks
7-
Heavy reliance on tractors and cranes, contributing 52.16% and 47.77% revenue, respectively, increases vulnerability to demand fluctuations.
-
Dependency on regulatory approvals and licenses poses risks to business continuity.
-
Expansion project delays or cost overruns may affect financial stability.
-
Under-utilised capacity for tractors at 32% may impact operational efficiency.
-
Dependency on financing from banks, NBFCs, and subsidiary NBFC affects tractor sales.
-
Low PAT margins, declining from 4.15% in FY 2022 to 3.27% in Q1 FY 2024, highlight limited profitability growth.
-
Pending legal proceedings and complaints may harm reputation and operations.
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Indo Farm Equipment Limited Peer Comparison
| Company Name | EPS (Basic) | NAV (per share) (₹) | RoNW (%) |
|---|---|---|---|
| Indo Farm Equipment Limited | 4.15 | 84.43 | 4.92 |
| Escorts Kubota Limited | 92.64 | 830.43 | 11.44 |
| Action Construction Equipment Limited | 27.56 | 103.28 | 30.78 |
Indo Farm Equipment IPO FAQs
Indo Farm Equipment IPO is a book-built issue IPO. It will be open from December 31, 2024, to January 2, 2025.
The Basis of Allotment will happen on Friday, January 3, 2025.
The IPO subscription window will open on December 31, 2024.
The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 69 shares.
The listing date for Indo Farm Equipment IPO is Tuesday, January 7, 2025.
The issue size of the Indo Farm Equipment IPO is up to ₹260.15 crore, with a fresh issue of ₹184.90 crore and an offer for sale of ₹75.25 crore.
The open and close dates for Indo Farm Equipment IPO are from December 31, 2024, to January 2, 2025.
Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.
- Multiple Submissions: Use different Demat accounts to make multiple applications.
- Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
- Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.
You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
You can submit only one application using your PAN card.
To read Indo Farm Equipment’s financial statements, download the IPO’s RHP document.
Pre-apply allows investors to apply for the Indo Farm Equipment IPO two days before the subscription period opens, ensuring an early submission of your application.
Your order will be placed when the IPO opens for bidding, and a UPI request will follow within 24 hours.
You will receive a notification once your order is successfully placed with the exchange after the bidding starts.
Mas Services Limited is the registrar responsible for managing the IPO allotment process and handling investor queries.
The Indo Farm Equipment IPO is proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
