Wed Jan 01 08:04:15 UTC 2025: **Indo Farm Equipment IPO Oversubscribed, Commands High Grey Market Premium**

MUMBAI, January 2, 2024 – The initial public offering (IPO) of Indo Farm Equipment Ltd., a tractor manufacturer, has seen a strong surge in demand, closing in on its final day heavily oversubscribed. The IPO, which opened on December 31st and closes January 2nd, has already been subscribed 25.74 times, with retail investors showing particularly strong interest (26.53 times oversubscription).

The company aims to raise ₹260.15 crore through a combination of fresh issue and offer-for-sale. The IPO price band is set at ₹204-₹215 per share. At the upper end of the band, the market capitalization would reach ₹1,033.1 crore.

Adding to the positive sentiment, Indo Farm Equipment shares are trading at a significant grey market premium (GMP) of ₹96 per share, indicating a grey market price of ₹311, a 45% premium over the issue price.

While some analysts point to a high price-to-earnings (P/E) ratio of 51.8x (based on FY24 earnings) compared to peers, others, such as BP Equities and Anand Rathi, recommend subscribing to the IPO, citing the company’s improving sales, strategic investments, and favorable industry trends as positive long-term indicators.

The allotment is expected on January 3rd, with the listing slated for January 7th. Aryaman Financial Services is the book-running lead manager. Investors are advised to consult with financial advisors before making investment decisions.

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