The Indo Farm Equipment IPO has seen an overwhelming response on its final bidding day, being subscribed over 220 times so far. The company’s initial public offering, which began on December 31 and concludes today, January 2, has generated significant interest among investors. The price band is set at ₹215 per share.
At the upper end of the price band, the company aims to raise ₹260.15 crore. The IPO comprises a fresh issue of 86 lakh equity shares worth ₹184.90 crore and an offer-for-sale of 35 lakh shares amounting to ₹75.25 crore. As of the last update, the total subscriptions are 220 times.
The QIB segment is subscribed 156.74 times. The NII segment is subscribed 461.27 times. The retail segment is subscribed 90.75 times.
Incorporated in 1994, Indo Farm Equipment Limited manufactures tractors and pick & carry cranes. With a strong domestic presence and expanding international footprint, the company’s production facilities can manufacture 12,000 tractors and 1,280 pick & carry cranes annually. Its products range from 16 HP to 110 HP for tractors and 9 to 30 tons for cranes.
Indo Farm has a series of achievements including the commencement of tractor production in Baddi, Himachal Pradesh, launches of several tractor models and the expansion into crane production, accreditation as an ISO 9001:2008 certified company, and initiation of a subsidiary, Barota Finance Limited, for providing finance to customers. The company has an ongoing expansion to increase crane production capacity by 3,600 units per year, expected to contribute from the second half of FY26 onwards. According to SBI Securities, the company is valued at FY24 P/E and EV/EBITDA multiples of 66.2x and 17.9x respectively on post-issue capital.
The company’s sales, EBITDA, and PAT have grown at CAGRs of 3.2%, 9.5%, and 6.6% respectively from FY22-24. The crane segment, in particular, has shown strong growth, with sales increasing at a ~45% CAGR over the past three years. Multiple analysts have assigned a ‘Subscribe’ rating to the IPO based on strong industry dynamics, promising growth prospects, and robust financial metrics.
The company’s integrated manufacturing capabilities and entry barriers enhance its potential for long-term growth. The key management includes Ranbir Singh Khadwalia, the founding promoter and Chairman & Managing Director with nearly three decades of experience in agricultural equipment manufacturing, and Anshul Khadwalia, the Whole-Time Director holding a Bachelor of Science in Business and Management from Aston University. Given the high subscription rates and positive analyst reviews, Indo Farm Equipment’s IPO is positioned as an attractive long-term investment option in the growing sectors of agricultural machinery and construction equipment.
Stay tuned for further updates as the IPO bidding concludes today. Today marks the final day for the Indo Farm Equipment IPO, receiving strong interest from various investor categories. The initial public offering, structured as a book-built issue and valued at Rs 260.15 crore, is slated to debut on the stock market on January 7.
As per the latest data from investorgain.com, the current grey market premium (GMP) for Indo Farm Equipment stands at Rs 91. If this GMP remains steady, the IPO is likely to see a positive listing. As of the latest updates, the subscription figures for Indo Farm Equipment’s IPO are highly promising.
Qualified Institutional Buyers (QIBs) subscribed 242.34 times, Non-Institutional Investors (NIIs) subscribed 498.48 times, Retail Individual Investors (RIIs) subscribed 97.80 times, and the total subscription is 224.96 times.
Strong demand for Indo Farm IPO
Indsec Research has given a ‘subscribe’ rating for the Indo Farm IPO, citing the company’s strong financial performance and positive industry trends.
Indo Farm, a prominent manufacturer of tractors and cranes in India, has achieved a compound annual growth rate (CAGR) of 3% in revenue, 9% in EBITDA, and 7% in PAT over FY22-24, maintaining a robust operating profit margin of 16.5%. The company’s adoption of advanced technologies in agriculture and infrastructure development aligns well with its growth prospects. In broader market updates, investors project that Indian states will incur higher premiums over central government securities to meet a record-high borrowing target for the January-March quarter.
States aim to raise 4.73 trillion rupees, the highest-ever for any quarter. The Indian rupee ended at a record low of 85.75 against the US dollar, down from the previous close of 85.64. The government has constituted a Working Group to revise the base year for the Wholesale Price Index (WPI) from 2011-12 to 2022-23, chaired by Ramesh Chand, Member, NITI Aayog.
On the first trading day of 2025, the Sensex surged over 1,000 points while the Nifty 50 crossed the 24,000 mark, driven by optimism around quarterly earnings and a revival in consumption. The rally was led by strong performances in banking and IT stocks. The Indo Farm Equipment IPO’s impressive subscription numbers and positive grey market premium signal a potentially successful debut on January 7.
The company’s solid financial footing and favorable industry conditions provide a robust backdrop for investors. After a busy week of listings and initial public offerings (IPOs), primary market activity is expected to slow down in the coming week, with three IPOs opening and six listings scheduled. In the IPO space, Indo Farm Equipment Ltd.
will launch its maiden issue for subscription on Tuesday. The agricultural equipment manufacturer has reduced the size of its fresh issue from 1.05 crore shares to 86 lakh shares. The offer-for-sale component will include 35 lakh shares, which will be sold by promoter Ranbir Khadwalia, according to the red herring prospectus.
The three-day IPO will close on January 2. On the same day, Technichem Organics Ltd., an SME-focused company, will open its IPO for subscription. The company is looking to raise Rs 25.2 crore by offering shares in the price band of Rs 52 to Rs 55 per share.
Additionally, Leo Dryfruits & Spices Trading Ltd., another SME IPO, will open on New Year’s Day. On the listing front, Senores Pharmaceuticals Ltd., Ventive Hospitality Ltd., and Carraro India Ltd. are set to debut on the exchanges this week.
Senores Pharmaceuticals was subscribed 93 times. Ventive Hospitality and Carraro India were subscribed nine times and 1.12 times respectively. The grey market premiums of these public issues indicate a strong market debut.
The GMP for Senores Pharmaceuticals had a GMP of Rs 281 per share, while Ventive Hospitality IPO stood at Rs 77, indicating a potential gain of 11.98%. The week will conclude with the listings of Citichem India Ltd. and another SME entrant.
With fewer IPOs and a busy listing schedule, the primary market will experience a quieter week compared to the previous surge in activity.
