The much-awaited Indo Farm Equipment IPO has garnered significant attention in the market. With the share allotment scheduled for January 3, 2025, here are 10 essential points that investors should keep in mind before the stock gets listed on January 7, 2025.
1. Grey Market Premium (GMP)
- The GMP for Indo Farm Equipment shares is currently trading at ₹90 per share, indicating a potential listing price of ₹305 per share.
- This represents a 41.86% premium over the upper issue price of ₹215 per share, signaling strong market demand.
2. IPO Subscription Numbers
- The IPO was oversubscribed by 66.23 times, reflecting overwhelming investor interest.
- Breakdown of subscription:
- Retail Investors: 51.78 times
- Qualified Institutional Buyers (QIBs): 12.02 times
- Non-Institutional Investors (NIIs): 172.25 times
3. Price Band and Fundraising
- The price band for the IPO was set between ₹204 and ₹215 per share.
- Indo Farm Equipment aims to raise funds to the tune of ₹78.05 crore from the public issue.
4. Anchor Investors
- Indo Farm Equipment secured ₹78.05 crore from anchor investors through anchor bidding held on December 30, 2024.
- Anchor investors are critical in showcasing market confidence in the company’s prospects.
5. IPO Timeline
- Subscription Period: December 31, 2024, to January 2, 2025
- Share Allotment Date: January 3, 2025
- Listing Date: January 7, 2025
- Shares will be listed on the NSE and BSE.
6. Purpose of Fundraising
The proceeds from the IPO will be utilized for:
- Expansion of operations
- Repayment or prepayment of borrowings
- Strengthening export strategies in emerging markets
7. Financial Performance
- FY 2023-24 Highlights:
- Revenue increased by 1%.
- Profit After Tax (PAT) also grew by 1%.
- Despite modest growth, the company’s operational and global strategies have kept investors optimistic.
8. Key Players
- Book-Running Lead Manager: Aryaman Financial Services
- Registrar: Mas Services
- These stakeholders are managing the IPO process to ensure transparency and smooth execution.
9. About Indo Farm Equipment
- Founded: 1994
- Operations: Manufacturing tractors, cranes, and harvesting equipment under the brands Indo Farm and Indo Power.
- The company has carved a niche in both domestic and international agricultural equipment markets.
10. Global Presence
- Indo Farm Equipment exports its products to Nepal, Syria, Sudan, Bangladesh, and Myanmar, showcasing its international reach and potential for further growth.
What to Expect Post-Allotment
- Investors are advised to check their allotment status on the NSE or BSE websites or via the Mas Services portal.
- Given the strong GMP and oversubscription, Indo Farm Equipment is expected to have a robust debut on the stock exchange.
Keep an eye on this promising stock and its performance on the listing day!