Indo Farm Shares Lists At 20% Premium Over Issue Price

Shares of Indo Farm Equipment Ltd. debuted on the BSE at Rs 258.40 per share, marking a premium of 20.19% over the issue price of Rs 215. The stock listed on the National Stock Exchange at Rs 256 apiece, at a premium of 19.07%.

Indo Farm Equipment's IPO, which closed on Jan. 2, was subscribed 229.68 times, with demand led by non-institutional investors. The Rs 260.15-crore offering consisted of a fresh issue of Rs 184.90 crore and an offer for sale of Rs 75.25 crore.

The company also raised nearly Rs 78 crore from anchor investors a day before its IPO opened for bidding.

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.

The company downsized its maiden public offer's fresh issue from 1.05 crore shares to 86 lakh shares. The OFS component consists of 35 lakh shares, which will be offloaded by promoter Ranbir Singh Khadwalia.

Aryaman Financial Services Ltd. is the book-running lead manager of the IPO, while Mas Services Ltd. was the registrar for the issue.

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.