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Indo Farm Equipment IPO Day 1: GMP, Subscription Status & Review – Buy or Avoid?
Indo Farm Equipment IPO Day 1: Indo Farm Equipment Limited’s initial public offering (IPO) has hit the Indian primary market today. Bidding for the Indo Farm Equipment IPO will begin at 10:00 am today and will remain open till 5:00 pm on January 2, 2025. The company has announced a price band of Rs 204 to Rs 215 per share for the Indo Farm Equipment IPO. The tractor manufacturer aims to raise Rs 260.15 crore from this public issue, which is a mix of fresh shares and offer for sale (OFS).
Meanwhile, the grey market is witnessing a positive trend on the Indo Farm Equipment IPO opening date. According to stock market experts, Indo Farm Equipment Limited shares are available at a premium of Rs 82 in the grey market today.
Indo Farm Equipment IPO Subscription Status As of 3:00 pm on the first day of bidding, the public issue was subscribed 13.19 times; the retail portion was booked 15.43 times, while the NII segment was filled 19.50 times. The QIB segment was booked 4.55 times. Indo Farm Equipment IPO Details
Indo Farm Equipment IPO Day 1
1] Indo Farm Equipment IPO GMP: According to stock market observers, Indo Farm Equipment Limited shares are available at a premium of Rs 82 in the grey market today.
2] Indo Farm Equipment IPO Price: The tractor manufacturer has declared the price band of the public issue at Rs 204 to Rs 215 per equity share. 3] Indo Farm Equipment IPO Date: The public issue has opened today and will remain open till January 2, 2025.
4] Indo Farm Equipment IPO Size: The tractor manufacturer aims to raise Rs 260.15 crore from this public issue, of which Rs 184.90 crore is expected to be raised by issuing fresh shares.
5] Indo Farm Equipment IPO Lot Size: Bidders can apply in lots, and one lot of the book build issue consists of 69 company shares.
6] Indo Farm Equipment IPO Allotment Date: The most likely date for finalization of share allotment is January 3, 2025.
7] Indo Farm Equipment IPO Registrar: Mass Services Limited has been appointed as the official registrar of the book build issue.
8] Indo Farm Equipment IPO Lead Manager: Aryaman Financial Services Limited has been appointed as the lead manager to the public issue.
9] Indo Farm Equipment IPO Listing Date: The public issue is proposed to be listed on BSE and NSE, and the most likely date of share listing is January 7, 2024.
10] Indo Farm Equipment IPO Review: On whether one should apply for the book build issue, Palak Devadiga, Research Analyst at Stoxbox said, “The issue is priced at a P/E ratio of 51.8x at the upper price band based on FY24 earnings, which is relatively higher than its peers.
Indo Farm Equipment IPO: Good or Bad for Investors
However, given the company’s improving sales, its growth-oriented investments in NBFCs, and favorable industry trends, we recommend a “Subscribe” rating for the issue.” Advising primary market investors to apply for the long term, Bajaj Broking report said, “On the financial performance front, in the last three financial years, the company has reported total income/net profit of Rs 352.52 crore/Rs 13.72 crore (FY22), Rs 371.82 crore/Rs 15.37 crore (FY23), and Rs 375.95 crore/Rs 15.60 crore (FY24) on a consolidated basis. In the first quarter of FY25 ending June 30, 2024,
it achieved a net profit of Rs 2.45 crore on total income of Rs 75.54 crore.” However, the brokerage finds the book-built issue priced aggressively, “If we annualise FY25 earnings based on fully paid-up equity capital post IPO, the asking price reflects a P/E of 105.39. Based on FY24 earnings, the P/E is 66.15. The issue appears to be aggressively priced relative to its recent earnings.”
Conclusion:
The Indo Farm Equipment IPO has generated significant investor interest on Day 1, with positive GMP signals and decent subscription rates. However, potential investors should carefully consider the financial health of the company, its long-term growth prospects, and the industry dynamics before making any investment decisions. For risk-averse investors, waiting for more information and post-IPO developments might be prudent. On the other hand, those with a higher risk tolerance could explore the opportunity if the fundamentals align with their investment goals.
