Indo Farm Equipment IPO is set to open for bidding on 31st December 2024 and is to offer 1,21,00,000 shares. This book-built issue will come up with the combination of a fresh issue of 86,00,000 shares (worth Rs 184.90 crore) and 35,00,000 shares (worth Rs 75.25 crore). 

Investors can bid for this IPO from 31st December 2024 to 2nd January 2025. Moreover, the shares offered in this IPO will be listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) on the finalised date, 7th January 2025.

Indo Farm Equipment IPO: Issue Size, Key Details, and More

Indo Farm Equipment IPO is inclusive of a fresh issue of 86,00,000 shares and an offer for sale of 35,00,000 shares. Different categories of investors are allowed to bid for the IPO and earn profit at the time of listing.

Here is the category-wise division of the shares reserved in the Indo Farm Equipment IPO as per the SEBI (Securities Exchange Board of India).

Note: NII (Non-Institutional Investors), sNII (Small Non-Institutional Investors), bNII (Big Non-Institutional Investors), QIB (Qualified Institutional Buyers). 

Fundamental Analysis of Indo Farm Equipment IPO

Over the past few decades, Indo Farm Equipment Limited has shown consistent growth in its net worth and profit margins. The company has strong fundamentals and is poised to grow in the coming decades. However, it is essential to explore the key fundamentals of Indo Farm Equipment IPO to gain a better idea of its listing trends. Keep scrolling to explore. 

1. Financial Performance

Assessment of financial performance could be the very first step for investors to analyse the growth potential of the business. With this, one can evaluate the rise and fall of profit margins, revenue, and debt level of the company. 

The revenue and profit after tax of Indo Farm Equipment Limited surged by 1% from 31st March 2023 to 31st March 2024. The company has shown consistent growth in its net worth, which was Rs 274.80 crore in 2022 and increased to Rs 342.25 crore in June 2024.

The robust financial performance of the company might encourage investors to bid for Indo Farm Equipment IPO, and individuals can expect effective listing gains on 7th January 2025. On 31st March 2023, the total borrowings of Indo Farm Equipment was Rs 280.65 crore, which stood at Rs 245.36 crore on 30th June 2024. 

2. Technical Indicators

Here are some of the key technical indicators for analysing the Indo Farm Equipment IPO. Consider them before making a bid. 

*Data is updated as of 26th December 2024.

Explanation: Indo Farm Equipment Limited’s PE ratio is estimated to be 105.25 posts to the IPO. The company has an effective PAT margin of 4.16 and is currently operating with a market capitalisation of Rs 1,033.11 crore.  Strong technicals indicate that Indo Farm is poised to show steady growth and might offer investors balanced returns in the coming decades. 

3. Industry Exposure

Indo Farm Equipment Limited operates in the global agriculture equipment market. The company, with growing industry potential, could benefit from certain factors, such as government initiatives and the increasing demand for tractors. 

Moreover, Indo Farm Equipment is also exposed to the agricultural machinery market, which is expected to reach $23.18 billion by 2028. It can take advantage of government schemes to support farmers in boosting sales of tractors and cranes. Being a tractor manufacturer, this company is also engaged in the broader automobile sector. Moreover, its vast exposure to foreign nations like Africa, the Middle East, and Asia could help it expand its global automotive sector footprints. 

Indo Farm Equipment IPO: What Requires to Bid?

To apply for Indo Farm Equipment IPO, investors should meet the minimum and maximum requirements. For example, retail investors can make a bid for a minimum of 69 shares (worth Rs 14,835) or a maximum of 897 shares (worth Rs 1,92,855). Refer to the table below for a better understanding of the requirements imposed on different categories of investors. 

Aim of Indo Farm Equipment IPO

Indo Farm Equipment Limited announced a book-built issue of 1,21,00,000 shares to raise Rs 260.15 crore from the investors. However, the company has exciting plans to utilise this fund to strengthen its capital base differentially. Explore the goals to optimally apply for Indo Farm Equipment IPO. 

• To pay certain borrowings of the company and reduce the debt level. 
• To set up a dedicated manufacturing facility to achieve the aim of making 3,600 cranes per year. 
•  To meet general corporate requirements for operating in the competitive market. 
• To invest in Barota Finance Ltd. (NBFC subsidiary) and meet the future capital requirements. 

Challenges Related to Indo Farm Equipment IPO

If you apply for Indo Farm Equipment IPO, you will encounter different challenges. However, knowing about these challenges in advance might help you be prepared for them with a strategic investment decision. Explore the challenges/risks mentioned below to safeguard your capital investment. 

• Regulatory Challenges: Indo Farm Equipment Limited is involved in different legal proceedings like civil cases, taxation, and criminal litigations. Their regulatory proceedings could be quantifiable in Rs 17.04 crores. The results of these cases could impact business performance in the coming years. Apply for Indo Farm Equipment IPO safely with an appropriate strategy to generate higher listing gains/returns from this stock.  
• Statutory Licensing: The company is bound by requirements to take statutory licenses and approvals to operate in the business environment. Any delay could disrupt business operations and severely impact the performance of Indo Farm Equipment Limited. 
• Unfavourable Events: The financial growth of Indo Farm majorly depends on factors like agricultural conditions, competition, infrastructure development, and government schemes. We all are aware of the circumstances companies might face due to unfavourable economic conditions and climatic changes. Apply for the Indo Farm Equipment IPO after analysing weather patterns and economic sentiments. 

Indo Farm Equipment IPO Peer Comparison

*Data is updated as of 26th December 2024

What Expert Says About Indo Farm Equipment IPO?

At Indo Farm, we take innovation seriously. It is the force that drives us to keep at it. ~ (Management at Indo Farm Equipment Limited).

Experts have a neutral outlook for Indo Farm Equipment Limited. They claimed that the company is fundamentally strong but suffering from legal cases and operating in a highly competitive environment. To apply for Indo Farm Equipment IPO hassle-free, explore the pros and cons. It could help you create a clear picture of the IPO’s capabilities to deliver listing gains on 7th January 2024. 

Pros of Indo Farm Equipment IPO

• Indo Farm Equipment Limited has an integrated manufacturing set-up to produce 12,000 tractors and 1,280 cranes per year. 
• The company has a plus point as its own in-house NBFC is set up to sell its products to diverse customers. 
• Exposure to international markets like Bangladesh, Syria, Nepal, Myanmar, and Sudan could help Indo Farm Equipment Limited maintain healthy financials.
• The company aims to increase its crane manufacturing capabilities to 3,600 per year through the funds from this issue. 

Cons of Indo Farm Equipment IPO

• Regulatory and climatic changes might impact Indo Farm Equipment Limited’s ability to operate in a competitive business environment. 
• The availability of giant competitors like Escort Kubota Ltd. and Action Construction Equipment Ltd. could be a hurdle for this company. 

SEBI-Registered analysis at Univest suggests that Indo Farm Equipment IPO could potentially list at a premium. However, it is essential to conduct your own research before applying for it. 

Note: If you want regular updates on potential IPOs, download the Android Univest app or iOS Univest App now and register to access insights on the upcoming IPOs. 

About Indo Farm Equipment Limited

Indo Farm Equipment Limited was incorporated in 1994 and manufactures tractors, harvesting equipment, and carry cranes. The company operates in two segments: Indo Farm and Indo Power. With a capacity of manufacturing 12,000 tractors and 1,280 cranes annually, Indo Farm Equipment Limited met domestic requirements and established its global presence across foreign nations. These countries include Bangladesh, Syria, Nepal, Myanmar, Sudan, etc. 

From a future perspective, this organisation aims to increase its crane manufacturing capacity by 3,600 units per year. The company has acquired another industrial land near the current manufacturing facilities to achieve this goal. As of June 2024, Indo Farm Equipment Limited operated with a wide employee base of around 938 people. The number is expected to increase further in the coming years. 

Indo Farm Equipment Limited Financials

Refer to the table below to evaluate 

*Data is updated as of 24th December 2024. 

Explanation: The revenue and PAT (Profit After Tax) of Indo Farm Equipment Limited significantly increased by 1%. Consistent YoY (year-over-year) growth in the company’s finances could be a notable factor for investors, and it reflects the potential of the business to show healthy numbers in the coming decades. The total borrowings of Indo Farm Equipment Limited decreased by around 25 crore, which indicates a positive trend for listing. 

How to Apply for Indo Farm Equipment IPO?

Applying for an IPO is simple. Just follow the steps mentioned below. 

• Know Details: Look at the IPO details like shares offered, issue size, lot size, price band, GMP, subscription status, etc. 
• Demat Account: Open your demat account using credentials and navigate to the IPO section. 
• Select and Apply: Choose Indo Farm Equipment IPO from the provided list and click on the apply button to make a bid. 
• Confirm Application: Approve the UPI mandate request received on your payment application to apply for Indo Farm Equipment IPO and wait for the allotment status to be declared.

How to Check Indo Farm Equipment IPO Allotment

Once the allotment is announced, applicants can track their status with two different modes. These include BSE’s official website and registrar portal. Explore the steps below to learn how to check Indo Farm Equipment IPO allotment status online. 

Check Allotment On the BSE Website

Follow the steps below to check Transrail Lighting IPO allotment status on BSE’s official website.

Step 1: Visit the official website of BSE through <https://www.bseindia.com/investors/appli_check.aspx>

Step 2: Select Issue Type as Equity to proceed. 

Step 3: Scroll down through issue names and select Indo Farm Equipment IPO.

Step 4: Choose one mode from the application no. or PAN to proceed. 

Step 5: Submit your information and get your allotment details on the screen.

Check Allotment On Registrar Portal

Mas Services Limited is the registrar of this public issue. Follow the steps below to check Indo Farm Equipment IPO allotment status on the registrar portal.

Step 1: Visit the registrar’s website through <https://www.masserv.com/opt.asp>.

Step 2: Select the option to check the allotment status from the application no./client id/PAN.

Step 3: Fill in the required details to proceed further. 

Step 4: Enter the captcha and click on the submit button. 

Step 5: Your allotment status will be displayed on your screen.

Let’s Wrap

Indo Farm Equipment IPO will be open for bidding on 31st December 2024. The issue aims to raise Rs 260.15 crore from investors by offering 0.86 crore primary shares and 0.35 crore secondary shares. Indo Farm Equipment Limited will utilise these funds in different business practices, such as funding its subsidiary NBFC, setting up dedicated manufacturing units, repaying loans, etc. Moreover, Mas Services Limited is the register of this public issue ensuring smooth allotment and refund procedures. 

Note: Conduct your own research to apply for Indo Farm Equipment IPO and check GMP updates to generate higher listing gains. 

FAQs For Indo Farm Equipment IPO

1. What is Indo Farm Equipment IPO?

Ans. Indo Farm Equipment IPO is a book-built issue of 1,21,00,000 equity shares worth Rs 260.15 crores. The IPO consisted of 86,00,000 fresh shares and 35,00,000 shares on offer for sale. The bid for this issue is set to open on 31st December 2024 and will be closed on 2nd January 2025. The shares of Indo Farm Equipment Limited will be listed on BSE and NSE in India. 

2. What is the GMP of Indo Farm Equipment IPO?

Ans. As of 26th December 2024, Indo Farm Equipment IPO GMP stands at Rs 85 with a price band of Rs 215. It indicates that the share is estimated to be listed at Rs 300. GMP is subject to change with market conditions, and it is essential for individuals to track updated GMP before applying for an IPO. 

3. What does Indo Farm Equipment do?

Ans. Indo Farm Equipment Limited manufactures harvesting equipment, cranes, and tractors to help its customers with innovative farming solutions. The company operates in two different segments: Indo Farm and Indo Power. As of June 2024, Indo Farm Equipment operated with an employee base of around 938 members and served its customers across foreign nations like Bangladesh, Nepal, Syria, Myanmar, Sudan, and more. 

4. What is the allotment date for the Indo Farm Equipment IPO?

Ans. The allotment date for Indo Farm Equipment IPO is finalised as 3rd January 2025. Mas Services Limited, the registrar of this IPO, is supposed to ensure a smooth allotment and refund procedure. For any query on allotment status, you can reach out to ipo@masserv.com. 

5. When will Indo Farm Equipment IPO be listed?

Ans. Indo Farm Equipment share will be listed on the BSE and NSE on 7th January 2025. Analysts are expecting this share to be listed at a premium. As per the current Indo Farm Equipment IPO GMP, the estimated listing price would be Rs 300 per share. 

6. How do you apply for the Indo Farm Equipment IPO?

Ans. You can apply for Indo Farm Equipment IPO by following the steps below. 

• Step 1: Check IPO details like shares offered, lot size, issue size, price band, etc. 
• Step 2: Use your demat account to place a bid by selecting the number of lots. 
• Step 3: Apply for the IPO by approving the mandate request through your UPI application. 
• Step 4: Wait for the allotment status to be declared. 

7. What is the PE ratio of Indo Farm Equipment Limited?

Ans. The PE ratio of Indo Farm Equipment Limited stands at 105.25 post-IPO. However, if we talk about the PE ratio of Indo Farm Equipment Limited before the IPO, it is valued at 54.39. Other technical indicators, like EPS, RoNW, ROCE, etc., should be considered when researching stock trends for the coming years. 

8. Who is the registrar of Indo Farm Equipment IPO?

Ans. Mas Services Limited is the registrar of Indo Farm Equipment IPO and is responsible for smooth allotment and refund initiation. For any query on refund or allotment status, reach out to ipo@masserv.com or check the website https://www.masserv.com/opt.asp.