Indo Farm Equipment IPO opens for subscription on December 31.
Indo Farm Equipment is a company dealing in tractors and Pick & Carry Cranes since more than two decades and it is keen to roll out an IPO on Tuesday, that is, 31 December. It also deals in many types of agricultural implements including Harvester Combines, Rotavators as well as their replacement parts. But these products are a minor source of income for it.
The manufacturing unit includes the induction furnaces, pneumatic molding machines, automated molding line, sand plant, metallurgy and sand testing laboratory and many other facilities such as machining, gear, press & fabrication shops painting & assembly line, quality control and utility.
The company is promoted by Ranbir Singh Khadwalia and Sunita Saini.
The various listed competitors include; Escorts Kubota Ltd with P/E ratio of 36.79and Action Construction Equipment Ltd with P/E ratio of 47.42, according to RHP.
This company been in business for over 20years and specialising in manufacturing farm equipment and recorded a total income of ₹755.38 million for the period up to June 30, 2024. In the financial years ended March 31, 2024, 2023, and 2022, the total income was ₹3,759.53 million, ₹3,718.18 million and ₹3,525. … The profit after tax for these periods were ₹24,54,000, ₹155,95,000, ₹153,72,000 and ₹137,19,000 respectively.
About Indo Farm Equipment IPO: Ten Facts
1. IPO Dates
The IPO is launched on Tuesday December 31 and closes on Thursday 2nd January.
2. Price Band
The issue price is slated within the price band of ₹ 204/- to ₹ 215/- per equity share of face value of ₹ 10/-.
3. Lot Size
The company has provided that investors can offer a minimum of 69 equity shares and in lots of 69 thereafter.
4. Anchor Investors
The plan to allocate shares to anchor investors will take place on Monday 30 December.
5. IPO Structure
Fresh issue for the IPO is about 8.6 million equity shares while up to 3.5 million equity shares by one of the major promoters, Ranbir Singh Khadwalia through Offer for Sale or OFS.
6. Objectives of the IPO
Proceeds from the IPO will be used for:
- Setting up of facility with the view of increasing the production capability of Pick & Carry Cranes (₹70 crore).
- Repayment or partial repayment of selected/individual loans (upto ₹50 crore).
- Enhancement of capital base of NBFC subsidiary – Barota Finance; (Rs.45 crore).
- General corporate purposes.
7. Listing and Allotment Details
The share allotment will be determined on 3 January 2020. Reverse will be done on or before 6th January and the shares will be credited to the investors demat accounts on the same date. The IPO of Indo Farm Equipment will be listed on BSE and NSE on Tuesday, the seventh of January this year.
8. Lead Manager and Registrar
Aryaman Financial Services Ltd is the book running lead manager to the IPO and the registrar to the issue is Mas Services Ltd.
9. Reservation Quota
- This is followed by 50% that are only available to Qualified Institutional Buyers (QIB).
- 15% are for Non-Institutional Investors (NII).
- 35% for a retail investor.
10. Grey Market Premium (GMP)
Grey market premium for Indo Farm Equipment shares is now at ₹90, which means listing price is ₹305 per share, 41.86% more than the IPO upper circuit of ₹215.
The stock whose volume has gone up in the last one-and-a-half a month GMP has an identified range of between 0 and 90 indicating high demand. This is because the premium revolves around investors’ feelings and their per capital readiness to pay more than the issue price.
Disclaimer: Figures and graphics presented here, along with all the recommendation and outlooks presented herein, belong to individual analysts. Neither of the above statements is in anyway the opinion of Mint. The investors are encouraged to seek professional advice from accredited personnel before they invest.
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