Indo Farm Equipment Limited, a manufacturer of tractors and agricultural machinery, is launching its Initial Public Offering (IPO) with the following details:
Indo Farm company Details
Here’s a detailed overview of Indo Farm Equipment Limited:
Product Portfolio:
A. Tractors:
- Range: 16 HP to 110 HP
- Applications: Agricultural, horticultural, and haulage.
- Special Features: Fuel-efficient, durable, and versatile for Indian farming conditions.
B. Pick-and-Carry Cranes:
- Capacity: 9 to 30 tonnes
- Applications: Construction, infrastructure, and industrial sectors.
C. Other Farm Equipment:
- Harvester Combines
- Rotavators
- Implements
Manufacturing Facility:
- Location: Baddi, Himachal Pradesh.
- Area: Spans 127,840 square meters.
Capacity:
- Tractors: 12,000 units per annum
- Cranes: 1,280 units per annum
Industry and Market Position:
- Operates in the agricultural machinery and construction equipment industries.
- Competes with major players like Mahindra & Mahindra, Escorts Kubota, and JCB.
- Focuses on offering affordable and reliable equipment to Indian farmers and contractors.
Core Strengths:
- Diverse Product Range: Caters to both agriculture and construction sectors.
- Export Capabilities: Expanding presence in global markets.
- Customer-Centric Approach: Offers financing solutions to make machinery accessible.
- Strong Leadership: Guided by experienced leadership and a visionary founder.
IPO Schedule:
- Opening Date: December 31, 2024
- Closing Date: January 2, 2025
- Allotment Date: January 3, 2025
- Listing Date: January 7, 2025
Issue Details:
- Total Issue Size: ₹260.15 crore
- Fresh Issue: ₹184.90 crore
- Offer for Sale: ₹75.25 crore
- Price Band: ₹204 to ₹215 per share
- Market Lot: 69 shares
- Minimum Investment: ₹14,835
Objectives of the Issue:
- Expansion: Establish a new unit to increase pick-and-carry crane manufacturing capacity.
- Debt Repayment: Repay certain corporate borrowings.
- Subsidiary Investment: Infuse capital into its NBFC subsidiary, Barota Finance Ltd.
- General Corporate Purposes.
Company Overview:
Indo Farm Equipment Limited is a leading Indian manufacturer of agricultural machinery and construction equipment. Founded in 1994 by Mr. R.S. Khadwalia, the company is headquartered in Baddi, Himachal Pradesh, and has established itself as a trusted brand in the industry.
Financial Performance:
FY 2022-23:
- Revenue: ₹370.75 crore
- Net Profit: ₹15.37 crore
FY 2023-24:
- Revenue: ₹375.23 crore
- Net Profit: ₹15.59 crore
Indo Farm Equipment Limited IPO Grey Market Premium (GMP):
As of December 28, 2024, the GMP is ₹85 per share, indicating a potential listing premium of approximately 40% over the upper price band.
Investor Considerations:
Potential investors should evaluate the company’s consistent financial performance, expansion plans, and current market conditions. Consulting with financial advisors is recommended to make informed investment decisions.
What is the share price of farm fresh IPO?
Farm Fresh Berhad, a leading Malaysian dairy producer, launched its Initial Public Offering (IPO) on March 22, 2022, with an offer price of RM1.35 per share.
Upon listing, the shares opened 26% higher, trading at RM1.70 per share.
As of December 27, 2024, Farm Fresh Berhad’s stock closed at RM1.85 per share on Bursa Malaysia.
This reflects a significant appreciation from the IPO price, indicating strong investor confidence in the company’s performance and growth prospects.
Indo farm equipment ipo good or bad
Indo Farm Equipment Limited remains committed to empowering the agricultural and infrastructure sectors in India and beyond, with a strong emphasis on sustainability and technological advancement.
Reasons It May Be a Good Investment:
(1) Consistent Financial Performance:
- Revenue growth: The company reported steady revenue of ₹375.23 crore in FY 2023-24, showing stability.
- Profitability: The net profit of ₹15.59 crore reflects consistent performance.
(2) Sector Growth Potential:
- The agricultural equipment sector in India is growing due to government incentives, increasing mechanization, and rural demand.
- Infrastructure growth also supports demand for cranes and heavy equipment.
(3) Strong Product Portfolio:
- Diverse range: Tractors (16-110 HP), pick-and-carry cranes, and farm equipment cater to varied needs.
- Export potential: The company is expanding its footprint in international markets.
(4) Use of IPO Proceeds:
- Investment in capacity expansion for pick-and-carry cranes.
- Debt repayment improves financial stability.
- Capital infusion in its NBFC subsidiary enhances financing options for customers.
(5) Grey Market Premium (GMP):
- A reported GMP of ₹85 suggests strong demand in the market, indicating potential listing gains.
Potential Risks and Concerns:
(1) Limited Profit Margins:
- Despite stable revenue, the company’s profit margins are relatively modest, which could be a concern for long-term investors.
(2) Competitive Industry:
- The agricultural equipment and construction machinery sectors are highly competitive, with players like Mahindra & Mahindra, Escorts Kubota, and JCB dominating.
(3) Dependence on Agriculture:
- The company’s performance is linked to the agricultural sector, which is influenced by monsoons and government policies.
(4) High Valuation:
- At the upper price band of ₹215, the IPO may be priced aggressively compared to its peers, raising valuation concerns.
(5) Market Volatility:
- IPO investments are subject to market sentiment. Factors like global economic conditions and interest rate movements could affect listing performance.
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