# Everything you need to know about Indo Farm Equipment Limited IPO

**URL:** https://tradingqna.com/t/everything-you-need-to-know-about-indo-farm-equipment-limited-ipo/177573
**Category:** IPOs
**Created:** [December 26, 2024, 12:56pm UTC](https://tradingqna.com/t/everything-you-need-to-know-about-indo-farm-equipment-limited-ipo/177573 "2024-12-26T12:56:17Z")
**Posts on this page:** 2
**Page:** 1

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### Author: ![nithin\_kumrr](https://tradingqna.com/user_avatar/tradingqna.com/nithin_kumrr/32/48231_2.png) [@nithin\_kumrr](https://tradingqna.com/u/nithin_kumrr)
#### Post date: [December 26, 2024, 12:56pm UTC](https://tradingqna.com/t/everything-you-need-to-know-about-indo-farm-equipment-limited-ipo/177573/1 "2024-12-26T12:56:17Z")

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### About

Incorporated in 1994, Indo Farm Equipment Limited manufactures tractors, pick & carry cranes, and farm equipment, including harvester combines and rotavators. Operating under the brands Indo Farm and Indo Power, the company exports to markets such as Nepal, Syria, Sudan, Bangladesh, and Myanmar. Its manufacturing facility in Baddi, Himachal Pradesh, spans 127,840 sq. meters and includes a foundry, machine shop, and assembly units. The facility has an annual capacity of 12,000 tractors and 1,280 cranes, with plans underway to increase crane production capacity by 3,600 units annually through a new unit.

### Issue size

| Funds to be Raised in the IPO | Amount |
| --- | --- |
| Overall | ₹260.15 crores |
| Fresh Issue | ₹184.90 crores |
| Offer for sale | ₹75.25 crores |

# 

### The utilisation of proceeds:

| Purpose | INR crores (%) |
| --- | --- |
| Setting up Pick & Carry Cranes Expansion Unit | 70.07 (37.9%) |
| Repayment of Borrowings | 50.00 (27.04%) |
| Investment in NBFC Subsidiary | 45.00 (24.34%) |
| General Corporate Purposes | TBA |

### Financial Snapshot

| Financial Year Ended | March 2022 | March 2023 | March 2024 | June 2024 |
| --- | --- | --- | --- | --- |
| Total Assets | 619.83 | 622.84 | 647.95 | 644.27 |
| Revenue | 352.52 | 371.82 | 375.95 | 75.54 |
| Profit After Tax | 13.72 | 15.37 | 15.6 | 2.45 |

**All figures are in ₹ Crores.**

### Strengths

- 330+ tractor and 190 crane components made in-house, reducing costs and reliance on third parties.
- R&D centre with engineers and indigenous designs for tractors and cranes.
- In-house NBFC Barota Finance with ₹127.15 crore loan book and 5,900+ customers.
- International market presence across Africa, Latin America, Europe, and Asia.
- Retail financing is backed by HDFC, Kotak, ICICI, and Axis Bank.
- ISO 9001:2015 certified facility in Baddi with in-house foundry and assembly units.

### Risk factors

- Revenue is heavily reliant on tractors (52.16%) and cranes (47.77%).
- Pending statutory approvals, including Consent to Operate and fire safety NOCs.
- Low tractor capacity utilization due to financing dependency and competition.
- Heavy reliance on financing from banks, NBFCs, and Barota Finance.
- Barota Finance faces loan recovery and regulatory risks.
- Geographical concentration in Himachal Pradesh poses operational risks.
- Risks from inventory mismanagement and raw material price volatility.

## IPO Schedule

| Issue Period | 31st December to 2nd January 2025 |
| --- | --- |
| Price band | ₹ 204 - 215 |
| Minimum Bid quantity | 69 shares |
| UPI Mandate Deadline | 5 PM, 2nd January 2025 |
| Allotment Finalization | 03 January 2025 |
| Refund Initiation | 06 January 2025 |
| Share Credit | 06 January 2025 |
| Listing Date | 07 January 2025 |
| Mandate end date | 17 January 2025 |
| Lock-In End Date for Anchor Investors (50%) | 02 February 2025 |
| Lock-In End Date for Anchor Investors (Remaining) | 04 April 2025 |

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### Author: ![vikramaditya](https://tradingqna.com/letter_avatar_proxy/v4/letter/v/ecae2f/32.png) [@vikramaditya](https://tradingqna.com/u/vikramaditya)
#### Post date: [January 1, 2025, 3:32am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-indo-farm-equipment-limited-ipo/177573/2 "2025-01-01T03:32:03Z")

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> [@Latest Grey Market Premium (GMP) for Indo Farm Equipment IPO GMP](https://tradingqna.com/t/latest-grey-market-premium-gmp-for-indo-farm-equipment-ipo-gmp/177767):
>
> Indo Farm Equipment IPO GMP GMP for Indo Farm Equipment is at 90 rs…The issue price is 215 n Grey market premium currently is 90 rs, nearly 42% premium GMP Date GMP Estimated Listing Price 2nd January ₹90 ₹305 (41.86%) 1st January ₹90 ₹305 (41.86%) 31st December ₹95 ₹310 (44.19%) 30th December ₹80 ₹295 (37.21%) 29th December ₹80 ₹295 (37.21%) 28th December ₹80 ₹295 (37.21%) 27th December ₹85 ₹300 (39.53%) 26th December ₹85 ₹300 (39.53%) GMP range for Indo Farm Equipment…