Indo Farm Equipment IPO: Key Highlights to Know Before Subscribing
Indo Farm Equipment, the well-known tractor and pick-and-carry crane manufacturer, is preparing to open its Initial Public Offering (IPO) on December 31. The IPO will be open for subscription until January 2. Indo Farm Equipment has been in the industry for more than two decades and has become a household name in agricultural and construction machinery. The company also manufactures harvester combines, rotavators, and spare parts, although these are not a significant source of revenue.
Indo Farm Equipment functions from modern facilities that have the best of technology like induction furnaces, pneumatic molding machines, an automatic molding line, and a sand plant. The infrastructure is supported by a fully equipped metallurgy lab, sand testing laboratory, machining gear systems, fabrication units, and quality control rooms. The strong operational setup reflects the company’s commitment to reliable and efficient products for customers.
The IPO comprises an entirely new issuance of 8.6 million equity shares and an offer for sale up to 3.5 million equity shares of promoter Ranbir Singh Khadwalia. Price band is set between ₹204 and ₹215 per equity share of face value ₹10. Investors will be able to bid for a minimum of 69 equity shares and in multiples of the same thereafter. The anchor investors’ allocation is scheduled for December 30, a day before the IPO opens for public subscription.
The funds raised through this IPO will be used to support the company’s growth plans. Indo Farm Equipment aims to set up a new dedicated facility to expand its production capacity for pick-and-carry cranes, earmarking ₹70 crore for this purpose. In addition, ₹50 crores will be utilized towards repayment or settlement of a few company loans, ₹45 crores will go into the capital base in its NBFC subsidiary called Barota Finance, and the rest will be used in general corporate purposes.
Year after year, the company has shown robust financials, which further strengthens it as a reliable player. Indo Farm Equipment clocked a total income of ₹755.38 million in the quarter ended June 30, 2024. It reported profit after tax at ₹24.54 million. During previous fiscal years, the company witnessed revenue in the order of ₹3,759.53 million in FY24, ₹3,718.18 million in FY23, and ₹3,525.21 million in FY22. Profit was recorded at ₹155.95 million during those periods, ₹153.72 million, and ₹137.19 million respectively.
The peers of Indo Farm Equipment in the market are Escorts Kubota Ltd and Action Construction Equipment Ltd, with P/E values of 36.79 and 47.42, respectively. These comparisons indicate the competitive positioning of Indo Farm Equipment in the industry.
Disclaimer: Stocks today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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