Indo Farm Equipment IPO day 1: GMP, subscription status, review, other details. Good or bad for investors?

Indo Farm Equipment IPO: The initial public offering (IPO) of Indo Farm Equipment Limited has hit the Indian primary market today. Bidding for the Indo Farm Equipment IPO will begin today at 10:00 AM and remain open until 5:00 PM on 2 January 2025. The company has declared an Indo Farm Equipment IPO price band of ₹204 to ₹215 apiece. The tractor-maker company aims to raise ₹260.15 crore from this public issue, a mix of fresh shares and offers for sale (OFS).

Meanwhile, the grey market is signalling positive trends on the Indo Farm Equipment IPO opening date. According to stock market observers, Indo Farm Equipment Limited shares are available at a premium of ₹82 in the grey market today.

Indo Farm Equipment IPO details

1] Indo Farm Equipment IPO GMP: According to stock market observers, Indo Farm Equipment Limited shares are available at a premium of ₹82 in the grey market today.

2] Indo Farm Equipment IPO price: The tractor maker company has declared the price band of the public issue at ₹204 to ₹215 per equity share.

3] Indo Farm Equipment IPO date: The public issue has opened today and will remain open until 2 January 2025.

4] Indo Farm Equipment IPO size: The tractor maker company aims to raise ₹260.15 crore from this public issue, out of which ₹184.90 crore is expected from the issuance of fresh shares.

5] Indo Farm Equipment IPO lot size: A bidder can apply in lots, and one lot of the book build issue comprises 69 company shares.

6] Indo Farm Equipment IPO allotment date: The most likely date for finalization of share allocation is 3 January 2025.

7] Indo Farm Equipment IPO registrar: Mas Services Limited has been appointed official registrar of the book build issue.

8] Indo Farm Equipment IPO Lead Manager: Aryaman Financial Services Limited has been appointed lead manager of the public issue.

9] Indo Farm Equipment IPO listing date: The public issue is proposed for listing on the BSE and the NSE, and the most likely date for share listing is 7 January 2024.

Indo Farm Equipment IPO: Good or bad for investors

10] Indo Farm Equipment IPO review: On whether one should apply for the book build issue or not, Palak Devadiga, Research Analyst, StoxBox, said, “The issue is priced at a P/E ratio of 51.8x on the upper price band, based on FY24 earnings, which is relatively high compared to its peers. However, given the company’s improving sales, growth-oriented investment in its NBFC, and favourable industry trends, we recommend a “SUBSCRIBE” rating for the issue.”

Advising the primary market investors to apply for the long-term, Bajaj Broking report said, “On the financial performance front, for the last three fiscal years, the company has reported a 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 Q1 of FY25, ending June 30, 2024, it achieved a net profit of Rs. 2.45 crore on a total income of Rs. 75.54 crore.”

However, the brokerage finds the book-build issue aggressively priced, “If we annualize FY25 earnings based on its post-IPO fully diluted paid-up equity capital, the asking price reflects a P/E of 105.39. Based on FY24 earnings, the P/E is 66.15. The issue seems aggressively priced relative to its recent earnings.”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.