The Indo Farm Equipment IPO has entered its final day of bidding today, January 2, 2025. This article provides live updates on the subscription status, grey market premium (GMP), and other essential details for investors considering this opportunity.
IPO Overview
The Indo Farm Equipment IPO has set its price band between ₹204 to ₹215 per share. The company aims to raise approximately ₹260.15 crore from this book-built issue, which includes a fresh issue of 86 lakh equity shares worth ₹184.90 crore and an offer-for-sale of 35 lakh shares amounting to ₹75.25 crore.
Subscription Status
As of the end of the second day of bidding, the Indo Farm Equipment IPO has been heavily oversubscribed, with a total subscription rate of 54.50 times. This includes bids for 46.16 crore equity shares against the offered 84.70 lakh shares. The breakdown of subscriptions is as follows:
- Retail Investors (RIIs): Subscribed 45.70 times
- Non-Institutional Investors (NIIs): Subscribed 131.78 times
- Qualified Institutional Buyers (QIBs): Subscribed 11.96 times
Grey Market Premium (GMP)
The grey market premium for Indo Farm Equipment shares today stands at ₹90, indicating a potential listing price of around ₹305, which reflects an impressive gain of approximately 42% over the upper end of the IPO price band.
Promoters and Company Background
Indo Farm Equipment is led by promoters Ranbir Singh Khadwalia and Sunita Saini, who collectively hold an aggregate of 30,976,748 equity shares in the company. Established in 1994, Indo Farm Equipment is recognized as a fully integrated manufacturer of tractors and pick-and-carry cranes, producing a wide range of agricultural and construction equipment.
Analyst Recommendations
Anand Rathi has recommended that investors subscribe to the Indo Farm Equipment IPO for long-term gains. The company’s diversified business model includes segments such as tractors, pick-and-carry cranes, and a non-banking financial company (NBFC). The anticipated investment in Barota Finance from IPO proceeds is expected to strengthen its dealer network and boost tractor sales.
Key Dates
- Bidding Period: December 31, 2024 – January 2, 2025
- Allotment Date: Expected on January 3, 2025
- Shares Credited to Demat Accounts: January 6, 2025
- Listing Date on BSE and NSE: January 7, 2025
Should I Apply?
Considering the strong demand evidenced by the oversubscription rates and a healthy grey market premium of ₹90, many analysts suggest that applying for the Indo Farm Equipment IPO could be a prudent decision for long-term investors. The company’s solid fundamentals, experienced management team, and diversified product offerings position it well for future growth.However, potential investors should also assess their risk appetite and investment strategy before making a decision. If you believe in the growth potential of Indo Farm Equipment and are comfortable with the associated risks of investing in an IPO, it may be worthwhile to apply.
Conclusion
Investors interested in participating in the Indo Farm Equipment IPO have only a few hours left to place their bids as the subscription window closes today. Given the strong demand and positive GMP signals, many analysts recommend considering this IPO for long-term investment.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions. Investments in securities are subject to market risks; read all related documents carefully before investing.
