Upcoming IPO: Indo Farm Equipment IPO to open on December 31; check issue details, key dates, more

Upcoming IPO: Indo Farm Equipment IPO's date of subscription is slated as Tuesday, December 31, with the issue set to close on Thursday, January 2, as per the red herring prospectus (RHP). The allocation to anchor investors for Indo Farm Equipment IPO is scheduled to take place on Monday, December 30. According to sources, the company is expected to reveal the IPO price band tomorrow.

Tentatively, Indo Farm Equipment IPO basis of allotment of shares will be finalised on Friday, January 3, and the company will initiate refunds on Monday, January 6, while the shares will be credited to the demat account of allottees on the same day following the refund. Indo Farm Equipment shares are likely to list on BSE and NSE on Tuesday, January 7.

About Indo Farm Equipment

Established in 1994, Indo Farm Equipment specialises in the production of Tractors, Pick & Carry Cranes, and various harvesting machinery. The firm operates under two brand names: Indo Farm and Indo Power, and exports its products to countries including Nepal, Syria, Sudan, Bangladesh, and Myanmar.

The company produces tractors ranging from 16 HP to 110 HP and pick & carry cranes with capacities between 9 and 30 tons. Their manufacturing facility, located in Baddi, Himachal Pradesh, covers an area of 127,840 square meters and comprises a foundry, machine shop, and assembly units. 

The firm has the capacity to manufacture 12,000 tractors and 1,280 Pick & Carry Cranes each year. Spanning 127,840 square meters of industrial space, the facility in Baddi, Himachal Pradesh, includes a captive foundry, and machine shop, as well as fabrication and assembly units for tractors, pick & carry cranes, and other equipment.

As per the RHP, the company's listed peers are Escorts Kubota (with a P/E of 36.79), and Action Construction Equipment (with a P/E of 47.42).

The company's operating revenue as of fiscal 2024 was ₹375.2 crore, with a PAT of ₹15.5 crore.

Indo Farm Equipment IPO details

The IPO of the company based in Chandigarh includes a fresh issue of up to 8.6 million equity shares and an offer for sale (OFS) of up to 3.5 million equity shares by Ranbir Singh Khadwalia, the Promoter Selling Shareholder.

The company has conducted a pre-IPO placement of 1.9 million equity shares for ₹185 apiece, totalling Rs. 35.1 crore. As a result, the size of the fresh issue has been reduced to 8.6 million shares from 10.5 million shares.

The company intends to use the net proceeds from the fresh share sale to establish a new dedicated facility for increasing the manufacturing capacity of Pick & Carry Cranes ( ₹70 crore), to repay or pre-pay part or all of specific borrowings obtained by the company ( ₹50 crore), to further invest in its NBFC subsidiary (Barota Finance) to enhance its capital base for future requirements ( ₹45 crore), and the remaining amount for general corporate purposes.

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

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