The highly anticipated initial public offering (IPO) of Indo Farm Equipment Ltd, a leading tractor and engineering solutions provider, opened for subscription today, December 31, and will close on January 2. With a price band of ₹204 to ₹215 per share, the IPO has already garnered significant interest from investors across categories.
The net proceeds from the IPO will be utilized for:
By 11:00 AM on Day 1, the IPO was subscribed 3.73 times, with strong demand from retail and non-institutional investors (NII):
The IPO was fully subscribed within minutes of opening, showcasing its popularity and strong investor confidence.
The grey market premium (GMP) for Indo Farm Equipment shares is ₹80 per share, indicating a 37% premium over the upper price band of ₹215. This suggests robust interest and potential upside in the secondary market.
Prior to the IPO, Indo Farm Equipment raised ₹78 crore from anchor investors. Notable entities include:
The company allotted 36.30 lakh shares to these investors at ₹215 per share, the upper end of the price band.
Indo Farm Equipment has demonstrated consistent growth, as highlighted by its financials:
Particulars | FY22 | FY23 | FY24 | Q1 FY25 |
---|---|---|---|---|
Revenue (₹ crore) | 408.75 | 515.20 | 617.80 | 155.30 |
Net Profit (₹ crore) | 38.90 | 52.15 | 68.45 | 21.50 |
The company is positioned as a prominent player in the agricultural and industrial equipment space, with a focus on innovation and expansion.
According to Canara Bank Securities, the IPO is priced at a P/E ratio of 51.81x, which is higher than the industry average of 43.82x. While the valuation appears steep, the firm recommends subscribing for the long term, citing growth potential and market positioning.
The Indo Farm Equipment IPO has kicked off with a strong response from investors, driven by robust financial performance and growth potential in the manufacturing sector. With high subscription rates and a promising GMP, the IPO is set to attract more interest before it closes on January 2. Investors with a long-term horizon may find this offering a compelling opportunity.
Stay tuned for further updates on the Indo Farm Equipment IPO.
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