Indo Farm Equipment will launch its IPO on December 31, 2024, aiming to raise Rs 260.15 crore.
The IPO will be listed on BSE and NSE on January 7, 2025 amid strong gray market demand.
Indo Farm Equipment, a leading manufacturer of tractors and cranes, is set to launch its initial public offering (IPO) on December 31, 2024. This IPO will be the last of the year and will close for subscription on January 2, 2025. The company is looking to raise a total of Rs 260.15 crore through the offering.
The price band for Indo Farm Equipment’s IPO has been set between Rs 204 and Rs 215 per share. The IPO will involve the issuance of 8.6 million new shares as well as an offer for sale (OFS) of 3.5 million shares. The minimum investment for retail investors is Rs 14,835, which is equivalent to one lot of 69 shares.
The IPO will be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on January 7, 2025. The allotment process will be completed by January 3. Aryaman Financial Services Ltd is serving as the book-running lead manager. For the IPO, while MAS Services Limited has been appointed as the Registrar.
In the gray market, Indo Farm Equipment’s IPO is already showing strong demand, with shares trading at a premium of Rs 21 on December 24. This suggests that investors may see a potential profit of Rs 21 per share on the day of listing.
However, market experts suggest that investment decisions should be based on a company’s financial health and future prospects rather than gray market trends.
The funds raised through the IPO will be used for several strategic purposes. A significant portion will be used to set up a new dedicated unit for the manufacture of pick-and-carry cranes. Additionally, part of the proceeds will go towards debt repayment, investments in the company’s NBFC subsidiary, Barota Finance and general corporate purposes.
Details of IPO Allotment
- 50% of the IPO is reserved for qualified institutional buyers (QIBs).
- 35% is reserved for retail investors.
- 15% is earmarked for non-institutional investors (NIIs).
As with any investment, IPOs have inherent market risks. Investors are urged to consult with certified financial advisors before making any investment decisions.
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