Wed Jan 01 06:49:28 UTC 2025: **Indo Farm Equipment IPO Oversubscribed on Day 2, Trading at Premium in Grey Market**

MUMBAI, Jan 2, 2024 – The initial public offering (IPO) of Indo Farm Equipment Ltd., a tractor manufacturer, continues to attract strong investor interest on its second day of bidding. The IPO, which opened on December 31st and closes January 2nd, is priced between ₹204 and ₹215 per share. At the upper price band, the company aims to raise ₹260.15 crore.

By midday on January 2nd, the IPO was oversubscribed by 21.07 times, with bids exceeding the offered shares significantly. Retail investors showed particularly strong interest, with their portion oversubscribed by 21.54 times. Non-institutional investors also showed strong support, with their portion oversubscribed 37.23 times, while Qualified Institutional Buyers (QIBs) were 8.11 times oversubscribed.

The strong demand is reflected in the grey market, where Indo Farm Equipment shares are reportedly trading at a premium of approximately ₹96 per share, representing a 45% increase over the upper IPO price.

Anand Rathi and Canara Bank Securities have offered differing perspectives on the IPO’s valuation. While Anand Rathi recommends subscribing for the long term, citing the company’s traditional business value and planned expansion, Canara Bank Securities notes that the IPO’s price-to-earnings ratio is relatively high compared to industry peers, suggesting a higher-risk investment.

The company plans to utilize the IPO proceeds for expanding its pick & carry crane manufacturing capacity, repaying loans, investing in its NBFC subsidiary, and for general corporate purposes. The IPO received strong anchor investor support prior to its opening, with ₹78 crore raised from eleven entities. Aryaman Financial Services is the book-running lead manager for the IPO.

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