Thu Jan 02 12:23:27 UTC 2025: **Indo Farm Equipment IPO Oversubscribed 128 Times on Final Day**
**Chandigarh, January 3, 2025** – The initial public offering (IPO) of Indo Farm Equipment concluded today with overwhelming investor interest, closing oversubscribed by a massive 128.19 times. The three-day offering, which priced shares between ₹204 and ₹215, saw bids for 108,57,80,205 equity shares against the 84,70,000 shares on offer.
Retail investors showed particularly strong enthusiasm, subscribing 78.02 times their allocated portion. Non-institutional investors (NIIs) were even more enthusiastic, with a subscription rate of 346.22 times. Qualified institutional bidders (QIBs) subscribed 52.48 times.
The Chandigarh-based company, established in 1994, manufactures tractors, cranes, and harvesting equipment under the Indo Farm and Indo Power brands, exporting to several countries including Nepal, Syria, and Bangladesh. The IPO aimed to raise ₹260.15 crore, comprising a fresh issue of ₹184.90 crore and an offer-for-sale of up to 35 lakh equity shares.
Ahead of the IPO, Indo Farm secured ₹78 crore from anchor investors. The company reported a net profit of ₹15.6 crore for FY23-24 on revenue of ₹375.95 crore.
Brokerages largely recommended subscription, citing the company’s integrated manufacturing, experienced management, and diverse product range. However, they also cautioned about inventory risks and operational challenges. At the upper price band, the IPO’s price-to-earnings ratio is 66.2 times based on FY24 earnings per share.
The grey market premium (GMP) held steady at ₹90-95 per share, suggesting a potential listing gain of over 42-44 percent. Shares are expected to be listed on the NSE and BSE on January 7, 2025. Aryaman Financial Services acted as the book-running lead manager, and MAS Services as the registrar. The total market capitalization upon listing will be ₹1,033.11 crore.
First Piper 