Mon Dec 30 12:40:54 UTC 2024: ## Indo Farm Equipment IPO Opens December 31st, with Strong Grey Market Premium

**Chandigarh, India – December 30, 2024** – Indo Farm Equipment, a manufacturer of tractors and agricultural equipment, will launch its initial public offering (IPO) on December 31st, closing on January 2nd. The IPO, priced between ₹204 and ₹215 per share, consists of a fresh issue of 86 lakh equity shares and an offer-for-sale of 35 lakh shares. The anchor investor round concluded today.

A strong grey market premium (GMP) of ₹80 per share suggests a potential listing premium of 37.21% based on the upper price band. Analysts at Anand Rathi have given the IPO a “Subscribe-Long Term” rating, citing the company’s established business, experienced management, and planned capacity expansion.

The company intends to use the net proceeds to repay debt (₹50 crore), expand pick-and-carry crane manufacturing capacity (₹70.07 crore), and invest in its NBFC subsidiary, Barota Finance Ltd. (₹45 crore). The remaining funds will be allocated for general corporate purposes.

The IPO reserves at least 35% for retail investors, 15% for non-institutional investors, and a maximum of 50% for qualified institutional buyers. Aryaman Financial Services is the book-running manager, and MAS Services is the registrar.

While Indo Farm’s revenue largely stems from tractor (52.16%) and pick-and-carry crane (47.77%) sales, the company acknowledges risks associated with fluctuating demand and potential disruptions in manufacturing and financing. Investors are advised to consult financial professionals before making investment decisions.

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