Indo Farm Equipment IPO: Price band set at ₹204-215 per share; check issue details, key dates, more

Indo Farm Equipment IPO price band: The Indo Farm Equipment Limited IPO price band has been fixed in the range of ₹204 to ₹215 per equity share of the face value of ₹10. The Indo Farm Equipment IPO date of subscription is scheduled for Tuesday, December 31, and will close on Thursday, January 2. The allocation to anchor investors for the Indo Farm Equipment IPO is scheduled to take place on Monday, December 30.

The floor price is 20.40 times the face value and the cap price is 21.50 times the face value. The price/earnings ratio based on diluted EPS for FY 2023-24 at the higher end of the price band is as high as 51.81 as compared to industry average 42.10. The Indo Farm Equipment IPO lot size is 69 equity shares and in multiples of 69 equity shares thereafter.

Indo Farm Equipment IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Preliminarily, the basis for allotting shares in the Indo Farm Equipment IPO will be determined on Friday, January 3. The company is expected to start processing refunds on Monday, January 6, while shares will be deposited into the demat accounts of allottees that same day after the refunds. Shares of Indo Farm Equipment are anticipated to debut on the BSE and NSE on Tuesday, January 7.

Founded in 1994, Indo Farm Equipment focuses on manufacturing Tractors, Pick & Carry Cranes, and various types of harvesting machinery. The company operates under two brand names: Indo Farm and Indo Power, and it exports its products to several countries, including Nepal, Syria, Sudan, Bangladesh, and Myanmar.

The firm manufactures tractors with power ranging from 16 HP to 110 HP, as well as pick & carry cranes that have lifting capacities of 9 to 30 tons. Its manufacturing facility, situated in Baddi, Himachal Pradesh, spans an area of 127,840 square meters and includes a foundry, machine shop, and assembly units.

Indo Farm Equipment IPO details

The Chandigarh-based company's IPO consists of a fresh issue of up to 8.6 million equity shares and an offer for sale (OFS) of as many as 3.5 million equity shares from Ranbir Singh Khadwalia, the Promoter Selling Shareholder.

The company has completed a pre-IPO placement of 1.9 million equity shares at ₹185 each, amounting to ₹35.1 crore. Consequently, the fresh issue size has been adjusted from 10.5 million shares to 8.6 million shares.

The company plans to utilize the net proceeds from the fresh share sale to set up a new dedicated facility aimed at boosting the manufacturing capacity of Pick & Carry Cranes ( ₹70 crore), to repay or prepay part or all of certain loans taken by the company ( ₹50 crore), to further invest in its NBFC subsidiary (Barota Finance) to strengthen its capital base for future needs ( ₹45 crore), and the remaining funds for general corporate activities.

Aryaman Financial Services serves as the book-running lead manager for the issue.

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