Indo Farm Equipment IPO: Date, Price, GMP & Details

Indo Farm Equipment IPO - Complete Overview 

Indo Farm Equipment IPO a Mainboard IPO is a book-built issue of Rs.* Cr (1.2 Cr Shares) by Indo Farm Equipment Limited incorporated in 1994. It has been into the production of tractors, pick and carry cranes, and other harvesting equipment.

The company has two brands: Indo Farm and Indo Power, exporting to countries like Nepal, Syria, Sudan, Bangladesh, and Myanmar, among others.

The company ranges in tractor manufacturing from 16 HP to 110 HP and pick and carry cranes from 9 to 30 tons. The facility is located in Baddi, Himachal Pradesh with an area spanning 127,840 square meters which comprises foundry and machine shops, and assembly units. It has a capacity to produce 12000 tractors and 1,280 Pick & Carry Cranes annually.

The Company occupies the industrial land of 127,840 sq. meters in Baddi, Himachal Pradesh County, with an attached captive foundry, machine shop, fabrication and assembly units for tractors, and pick & carry cranes.

The additional land acquired is close to the existing site for the construction of the new pick & carry cranes manufacturing facility that would be able to boost its production capacity by 3600 units per year.

This new IPO is to be launched on 31 December 2024, and the initial public offering of this upcoming IPO will end on 02 January 2024.

Indo Farm Equipment Product Portfolio:

[A] Tractors 

 

[B] Cranes

 

 

Indo Farm IPO Details

The Rs.* Crore Indo Farm IPO comprises a combination of a fresh issue of 0.86 Cr Shares (Rs.* Cr) and an offer for sale (OFS) of 0.35 Cr Shares (Rs.* Cr). The IPO listing date is on January 07, 2024. Indo Farm Equipment IPO price is Rs.*. 

If you want to apply for the IPO, Click Here to open a Demat Account.

Company Financial

Between FYs ended 31 March 2024 and 31 March 2023, the company's revenue grew by 1%, and PAT increased by 1%.

(Amount in Crore)

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

Geography-wise Revenue from Operations

(Amount in millions)

 

Revenue Bifurcation of Domestic & Export Sales

(Amount in millions)

(Source RHP)

The Objective of the Issue

• Establishing a new dedicated unit to increase their manufacturing capacity for pick-and-carry cranes.

• Full or partial repayment or prepayment of some of the company's borrowed funds.

• Additional funding for the expansion of NBFC Subsidiary Barota Finance Ltd.'s capital base to satisfy its future capital needs.

 

Peers of Indo Farm Equipment Limited

 

Evaluation

The Indo Farm Equipment Limited IPO price band is between Rs.* for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.15 from the last year, the resulting P/E ratio is *x. 

Considering the weighted EPS of Rs.4.05 for the last three years, the P/E ratio is *x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 42.10x.

 

IPO's Strengths

• Completely consolidated and simplified manufacturing setting.

• Highly educated and experienced management.

• On-Site NBFC Configuration.

• Manufacture a wide range of products.

• International acceptability of products and several financial institutions.

IPO’s Weaknesses

• Dependence on External Resources: tractor demand changes according to government policies, agricultural subsidies, diesel price indexation, availability of bank credit, and season. Any adverse changes will deeply impact all the business operations.

• Volatility associated with raw material costs: The costs of raw materials account for the highest cost incurred by the company, and hence, will be very vulnerable to pressures of the market. Without long-term supplier contracts, the company will suffer constantly from price volatility, thus affecting profitability margins.

• Strong Competition: The company competes with many other Indian and international companies, some of which are much larger in both their scales of operation and resources. This would result in a loss of market share or larger spending on marketing.

• Regulatory and Compliance Risks: There may be newly introduced compliance requirements due to the changing laws and regulations in India. This can lead to increased operating costs or curtail business growth and result in legal uncertainty.

• Impact of Macroeconomic Conditions: The business works under the global and domestic picture of economic conditions such as inflation, interest rate changes, and political instability. These things can affect financial performance and investor confidence negatively. 

 

Indo Farm Equipment IPO GMP

Indo Farm Equipment IPO GMP today has not started yet as of 23 December 2024.

Indo Farm Equipment Limited IPO Timetable (Tentative)

The IPO date is from 31 December to 02 January, with IPO allotment on 03 January, and refund initiation on 06 January 2024. The IPO listing date is on 07 January 2024.

 

IPO Other Details 

Indo IPO with a face value of Rs.10 per Share, offers an IPO size of 1,21,00,000 Shares (Rs.* Cr) and it will be listed at BSE and NSE.

Indo Farm Equipment IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (* Shares) amounting to Rs.* and * Lots (* Shares) amounting to Rs.* respectively, while for HNI investors, the minimum Lot is * (* Shares) amounting to Rs.*.

IPO Reservation

Promoters and Management of Indo Farm Equipment Ltd.

• Ranbir Singh Khadwalia

• Sunita Saini.
  
  

IPO Lead Managers

• Aryaman Financial Services Limited.

 

Dividend Policy

The company has not paid a dividend in the last three FYs.

Conclusion

The Indo Farm Equipment IPO is an open invitation to investors to have a stake in a growing company with a diversified product portfolio and good manufacturing facilities. The mobilized proceeds out of this offer are meant for capacity expansion and debt repayments as well as growth of the subsidiaries.

Although weakness like stiff competition and rising raw material prices poses a threat to the company, it is strong in the areas of global presence and rich management experience. Investors need to understand the financials and the trends in the sector before investing.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here  to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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