Indo Farm Equipment IPO: Check GMP, Price Band, Issue Size

The subscription window for Indo Farm Equipment Limited's initial public offering (IPO) will open today. Priced between ₹204 and ₹215 apiece, the IPO is a book-built issue of ₹260.15 crore. The IPO is a combination of fresh issue (₹184.90 crore) and an offer for sale (₹75.25 core). The company is likely to make its stock market debut on January 7, 2025

How can investors subscribe to the shares?

Retail investors can place bids for one lot, which includes 69 shares amounting to ₹14,835. Small non-institutional investors (sNII) are mandated to apply for a minimum of 14 lots (966 shares) totalling ₹2,07,690. For large non-institutional investors (NII), the minimum size is 68 lots (4,692 shares), which equals ₹10,08,780.

GMP

The grey market premium (GMP) for the Indo Farm Equipment IPO is currently at ₹80. This projects a listing price of ₹295 apiece, a premium of 37.21%.

How are the funds going to be utilised?

Growing its footprint in the agriculture and construction equipment industries, a major chunk of IPO proceeds will be used towards increasing the production capacity of pick-and-carry cranes. The funds will also be utilised towards repayment of loans and general corporate purposes.

What does the company do?

Founded in 1994, Indo Farm Equipment Limited is into manufacturing of tractors, pick-and-carry cranes, and other harvesting equipment. Operating under two brands, Indo Farm and Indo Power, the company exports its products in countries such as Nepal, Syria, Sudan, Bangladesh, and Myanmar.