Mon Dec 30 13:32:43 UTC 2024: ## Indo Farm Equipment to Raise Rs 260 Crore in IPO

**Mumbai, December 30, 2024** – Indo Farm Equipment Ltd., an agricultural equipment manufacturer, is set to launch its initial public offering (IPO) on December 31st, aiming to raise up to Rs 260.15 crore. The IPO, priced between Rs 204 and Rs 215 per share, comprises a fresh issue of Rs 184.9 crore and an offer-for-sale (OFS) of Rs 75.25 crore by promoter Ranbir Singh Khadwalia. The company has reduced the fresh issue size from 1.05 crore shares to 86 lakh shares.

The three-day subscription period will close on January 2nd, with the shares expected to list on the BSE and NSE. Aryaman Financial Services Ltd. is the lead manager, and Mas Services Ltd. is the registrar. The anchor book opens on December 30th. A minimum investment requires 69 shares.

Indo Farm, with over two decades of experience, manufactures tractors, pick-and-carry cranes, and other agricultural equipment. While tractors and cranes constitute the majority of its revenue (52.16% and 47.77% respectively), the company also produces harvester combines and rotavators. Domestic sales account for approximately 93% of its revenue. Despite a slight increase in revenue and net profit in fiscal 2024 (Rs 375.23 crore and Rs 15.59 crore respectively), operating income declined, and the company carries a debt of Rs 247.3 crore (as of September 30, 2024).

The company plans to use the IPO proceeds to expand its pick-and-carry crane manufacturing capacity (Rs 70.1 crore), repay debt (Rs 50 crore), invest in its NBFC subsidiary (Rs 45 crore), and for general corporate purposes.

Concerns exist regarding the company’s underutilized manufacturing capacity (32% for tractors, 87% for cranes) and reliance on expected, but unconfirmed, demand for its capacity expansion plans. The concentration of manufacturing facilities in Himachal Pradesh also presents a risk.

The grey market premium is currently estimated at Rs 80, suggesting a potential listing price of Rs 295, a 37.21% premium over the upper price band. However, investors are cautioned that the grey market premium is speculative and not an official price indicator. Potential investors are advised to consult with financial advisors and thoroughly review the red herring prospectus before investing.

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