Indo Farm Equipment IPO GMP: Here’s what grey market premium and subscription status signal ahead of listing

Indo Farm Equipment initial public offering (IPO), which closed for bidding on January 2, received a stellar response from investors across all categories. The Indo Farm Equipment IPO was oversubscribed by an impressive 229.68 times on the final day of bidding. A total of 1,94,53,89,519 shares were bid for, significantly exceeding the 84,70,000 shares available.

The IPO saw remarkable demand across all segments, with the Qualified Institutional Buyers (QIB) category oversubscribed 242.40 times, the Non-Institutional Investors (NII) segment receiving 503.83 times bids, and the retail segment attracting 104.92 times the offered shares.

The allotment for the Indo Farm Equipment IPO was finalised on January 3, Friday and the investors are now keenly waiting for the listing on January 7, Tuesday.

Indo Farm Equipment IPO GMP

Ahead of listing, the shares of Indo Farm Equipment are trading at ₹96 in the grey market, as per market observers. This means that the listing price of Indo Farm Equipment IPO is likely to be ₹311, which is 44.65 per cent higher than the IPO price of ₹215.

The grey market premium (GMP) for Indo Farm Equipment IPO experienced a notable decline, dropping from ₹99 on the allotment day to ₹96 by January 5, according to data from Chittorgarh.com.

The lowest GMP of Indo Farm Equipment IPO is ₹0, while the highest GMP is ₹99.

Indo Farm Equipment IPO details

The issue was priced within a range of ₹204-215 per share. The IPO includes a fresh issuance of 86 lakh equity shares along with an Offer-for-Sale (OFS) of 35 lakh shares by promoter Ranbir Singh Khadwalia.

The proceeds from the fresh issue will be utilized to establish a new dedicated unit for expanding the company’s manufacturing capacity for pick-and-carry cranes, repay existing debt, and invest in its NBFC subsidiary, Barota Finance, to strengthen its capital base and meet future requirements.

At the top end of the price range, the IPO is valued at ₹260 crore, bringing the company's market capitalisation to over ₹1,000 crore.

Aryaman Financial Services is acting as the sole book-running lead manager for the issue. The equity shares are set to be listed on both the BSE and NSE.