Indo Farm Equipment Ltd.'s initial public offering was subscribed 229.68 times on its third day of bidding on Thursday.
The grey market premium for the Indo Farm IPO stands at Rs 96, as of 6:56 p.m., according to InvestorGain platform. This suggests that the shares could list at a 41.86% premium to the upper end of the price band.
The offer was subscribed 54.55 times on its second day, and 17.71 times on its first day of bidding. The price band for the Rs 260.15 crore-IPO is set between Rs 204 and Rs 215 per share, with a market value of Rs 1,033 crore at the upper end of the price range, as per NDTV Profit's calculations.
Ahead of the IPO's public subscription, the company secured Rs 78 crore from anchor investors on Monday. A total of 36.30 lakh shares were allotted to 11 entities at Rs 215 per share, the upper end of the price band.
Proceeds from the fresh issue will be used to establish a new unit for expanding the company's pick-and-carry crane manufacturing capacity, paying off debt, and investing in its NBFC subsidiary, Barota Finance, to bolster its capital base for future growth.
Issue Price
Issue price: Rs 204–215.
Offer for sale: Rs 75.25 crore.
Fresh issue: Rs 184.90 crore.
Total issue size: Rs 260.15 crore.
Lot size: Minimum 69 shares, and then in multiples thereof.
Business
Indo Farm Equipment manufactures tractors and pick and carry cranes, with over two decades of industry experience. The company also produces a range of agricultural equipment, including Harvester Combines, Rotavators, and related spares and components.
While these additional products do not significantly contribute to the company's overall revenue, Indo Farm's primary focus remains on its core offerings.
With a strong domestic presence, accounting for approximately 93% of its sales, the company also exports its products to international markets. Indo Farm operates manufacturing facilities featuring advanced infrastructure like a captive foundry, machine shop, and dedicated assembly units.
Indo Farm IPO Equipment: Subscription Status Day Three
The IPO has been subscribed 229.68 times as of 7:30 p.m. on Thursday.
Qualified institutional buyers: 242.40 times.
Non-institutional investors: 503.83 times.
Retail investors: 104.92 times.
Use Of Proceeds
The company plans to utilise the net proceeds from the fresh issue in the following manner:
Rs 70.1 crore to be used for setting up new dedicated unit for expansion of pick and carry cranes manufacturing capacity.
Rs 50 crore for repayment or prepayment of outstanding borrowing.
Rs 45 crore for further investment in the company's NBFC subsidiary Barota Finance Ltd. for financing the augmentation of its capital base to meet future capital requirements.
And the remaining for general corporate purposes.
Indo Farm Equipment IPO GMP
The grey market premium for the Indo Farm IPO stands at Rs 96 as of 6:56 p.m., according to InvestorGain platform. This suggests that the shares could list at Rs 305 each, reflecting a 41.86% premium to the upper end of the price band.
It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.
Watch The IPO Adda Here
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
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