Indo Farm Equipment Ltd has announced its Initial Public Offering (IPO) price band at Rs 204–215 per share. The IPO is set to open on December 31, 2024, with the anchor book opening a day earlier on December 30. The issue will close on January 2, 2025, and the company will list its shares on stock exchanges on January 7.
Key Details of the IPO:
- IPO Components:
- Fresh issue: Up to 86 lakh shares, valued at Rs 184.90 crore (upper price band).
- Offer for Sale (OFS): Up to 35 lakh shares, valued at Rs 753 crore (upper price band).
- Estimated Market Capitalization: Approximately Rs 1,000 crore.
- Use of Proceeds:
- Establishment of a dedicated manufacturing unit for Pick & Carry Cranes, with a project cost of Rs 71.13 crore.
- Repayment of outstanding debt, which stood at Rs 270.54 crore as of June 2024.
- Investment in the company’s NBFC arm, Barota Finance, to strengthen its capital base and support growth.
Company Overview:
Incorporated in 1994, Indo Farm Equipment Ltd is a fully integrated manufacturer of tractors and Pick & Carry Cranes. It also produces farm equipment such as Harvester Combines and Rotavators, though these contribute marginally to total revenue.
- Facilities: Located in Baddi, Himachal Pradesh, spanning 127,840 square meters, with a production capacity of 12,000 tractors and 1,280 cranes annually.
- Product Range:
- Tractors: 16 HP to 110 HP.
- Cranes: 9 tons to 30 tons capacity.
Financial Performance:
- FY24 Revenue: Rs 375.23 crore (up from Rs 370.76 crore in FY23).
- Net Profit: Rs 15.60 crore (FY24) vs. Rs 15.37 crore (FY23).
- Sales:
- FY24: 3,168 tractors and 941 cranes.
- FY23: 3,772 tractors and 681 cranes.
- As of June 2024: 471 tractors and 195 cranes sold.
Important Dates Post-Issue:
- Basis of Allotment: January 3, 2025
- Refunds/Credit of Shares: January 6, 2025
- Listing Date: January 7, 2025
Indo Farm Equipment’s IPO is expected to attract investor attention, given its growth in the crane segment, its diversified manufacturing capabilities, and plans to reduce debt and expand capacity.
