Indo Farm Equipment Limited IPO GMP Price Date Details
Agri products and infrastructures are two sensitive and strategic segments in the Indian economy; Indo Farm Equipment Limited (IFEL) has introduced technological advancement in these sectors. Founded in 1994 IFEL quickly developed into one of the major manufacturers of Agricultural equipment, Constructional tools and Industrial application solutions. Offering a wide range of products, high financial stability and consistently delivering high quality products the company is a true example of progress in a rather saturated market.
On this blog, you discover IFEL’s story and its products, revenue and loss, successes and setbacks as well as the strategic directions that map its future.
Indo Farm Equipment Limited : Company Overview
History and Evolution
It is an Indo-British company of farm equipment that started its journey in 1994 at Baddi in Himachal Pradesh. The firm started its commercial production in tractors in October, 2000 and it has been diversifying into other products like Pick-N-Carry cranes, engines, diesel gensets, etc as well as Harvester combines. Since then the company has expanded and become known as IFEL offering its products to both the domestic and global markets with solid, long lasting and dependable equipment.
Manufacturing Capabilities
The company employs a 21st-century manufacturing plant in the Baddi industrial zone that is spread over 127840 sq meters. This facility provides a complete line from foundry, machine shop, assembly lines right up to testing area. Due to the fact that IFEL has an installed annual capacity of 12000 tractors and 1280 cranes it is in a good position to respond to the increasing needs of its customers.
Product Portfolio : Indo Farm Equipment Limited
IFEL’s offerings cater to diverse sectors:
Tractors: These machines are in different horsepower from 22 HP to 100 HP depending on the nature of the job in agriculture.
Pick-N-Carry Cranes: Available in varying sizes which range from 9 to 30 tonnes, they are used in constructions, the transportation industry and in industries.
Harvester Combines: Intended for easy reaping of crop plants.
- Engines and Diesel Gensets: Popular in the industrial and agricultural uses.
Indo Farm Equipment Limited Market Presence
With 15 regional offices and over 150 dealers across India, IFEL has established a strong domestic footprint. The company also exports its products to countries like Nepal, Bangladesh, and Sudan, ensuring a global presence.
Indo Farm Equipment Limited Financial Performance
Revenue Growth
While classifying Indo Farm Equipment Limited recommendations have been done to classify it as a firm with good sound financial health. In more detailed, the revenue was growing from the FY 2021 to the FY 2023 and the CAGR is around 17.5% from ₹ 268.59 crore to ₹ 371.82 crore. It is growth for the reason of showing the ability of such a company to think of market trends and the chance to develop alternatives that targets the agricultural and construction equipment market.
Profitability Metrics
The company’s profitability has also shown significant improvement:
Profit After Tax (PAT): PAT of IFEL rose up from ₹ 8.49 crore of FY2021 to ₹ 15.56 crore of FY2023, at a CAGR of 34.5 % hence, boosting up the PAT of the IFEL.
Profit Margins: This has been increased from 3.17 % and as we noted in the FY 2021 to 4.19% as highlighted in the FY 2023 I think this is due to improved operations and minimizing the cost.
Financial Ratios
Return on Equity (ROE): increasing slightly from 3.25% of the FY2021 to 5.36% in the year ending FY2023.
Return on Capital Employed (ROCE): They increased from 6.61% FY2021 to 8.66%FY2023 suggesting that available resources were properly harnessed.
Debt-to-Equity Ratio: Purchased well below 1, it escalated from 0.89 at the end of FY2021 up to 0.97 at the end of FY 2023.
Assets and Net Worth
Total Assets: Increased from ₹551.38 Cr in the FY2021 to ₹622.84 Cr in FY2023, this will validate investment and growth of the Central also.
Net Worth: Have shown a good sound financial growth of total income of ₹ 261.25 crore in FY2021 to ₹290.57 crore in FY2023.
Recent Financial Highlights
For the fiscal year ending March 31, 2024, the company reported:
Total Revenue: ₹375.95 crore
Profit After Tax: ₹15.60 crore
Operating Profit Margin: 12.92%
Net Profit Margin: 4.19%
Indo Farm Equipment Limited IPO Details
Indo Farm Equipment Limited will float its IPO on 31st December, 2024 and the subscription list will close on 2 January, 2025.
Key Details of Indo Farm Equipment IPO :
Price Band: The shares are priced in between ₹204 to ₹215 per equity share.
Issue Size: These include 47 lakh share warrants with a face value of ₹100 each which have been issued and outstanding total 1,21,84,110 shares at a face value of ₹100 each in the aggregate,” he said, adding; “It involves the total issue of 260.15 crore. This includes a new offer of 0.86 crore shares (₹184.90 crore) and an Offer for Sale (OFS) of 0.35 crore shares (₹75.25 crore) by promoter Ranbir Singh Khadwalia.
Lot Size: The minimum number of shares that can be offered to the public is 69 and in any higher multiple of 69 as well.
Listing Date: It is proposed that the equity shares are to be listed on both NSE and BSE The listing to take place on January 7, 2025.
Allocation Details:
Qualified Institutional Buyers (QIBs): 50% of the issue is reserved.
Retail Investors: A further 35% of the issue is covered here.
Non-Institutional Investors (NIIs): That is, 15% of the issue is allocated.
Utilization of Proceeds:
The funds raised from the fresh issue are planned to be utilized for:
Establishing the new dedicated unit in order for the company to increase pick-and-carry crane manufacturing capability.
Repayment or prepayment in connection with some borrowings.
Funds to be the amount invested in the company’s wholly-owned NBFC subsidiary Barota Finance Ltd. for enhancing the capital in view of future needs.
Important Dates OF Indo Farm Equipment Limited IPO :
IPO Opening Date: December 31, 2024.
IPO Closing Date: January 2, 2025.
Allotment Finalization: January 3, 2025.
Refund Initiation: January 6, 2025.
Shares Credited to Demat Accounts: January 6, 2025.
Listing Date: January 7, 2025.
Indo Farm Equipment Limited IPO Details
IPO Date | December 31, 2024 to January 2, 2025 |
Listing Date | January 7, Tuesday, 2025 |
Face Value | ₹10 per share |
Price Band | ₹204 to ₹215 per share |
Lot Size | 69 Shares |
Total Issue Size | 1,21,00,000 shares (aggregating up to ₹260.15 Cr) |
Fresh Issue | 86,00,000 shares (aggregating up to ₹ 184.90 Cr) |
Offer for Sale | 35,00,000 shares of ₹10 (aggregating up to ₹75.25 Cr) |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
Shareholding Pre Issue | 3,94,51,600 shares |
Shareholding Post Issue | 4,80,51,600 shares |
Indo Farm Equipment Limited IPO Dates and Timeline
IPO Open Date | December 31, 2024 |
IPO Close Date | January 2, 2025 |
Basis of Allotment | January 3, 2025 |
Initiation of Refunds | January 6, 2025 |
Credit of Shares to Demat | January 6, 2025 |
Listing Date | January 7, 2025 |
Cut-off time for UPI mandate confirmation | 5 PM on January 2, 2025 |
Indo Farm Equipment Limited IPO Lots Allocation
Application | Lots | Shares | Amount |
Retail (Min) | 1 | 69 | ₹14,835 |
Retail (Max) | 13 | 897 | ₹1,92,855 |
S-HNI (Min) | 14 | 966 | ₹2,07,690 |
S-HNI (Max) | 67 | 4,623 | ₹9,93,945 |
B-HNI (Min) | 68 | 4,692 | ₹10,08,780 |
Indo Farm Equipment Limited IPO GMP :
Indo Farm Equipment Limited IPO GMP last recorded was ₹21, last updated Dec 24th 2024 02:27 PM. With the price band of 215.00, Indo Farm Equipment IPO estimated listing price is ₹236 (cap price + today’s GMP).The expected percentage gain/loss per share is 9.77%.
Indo Farm Equipment Limited Milestones and Achievements
Initial Public Offering (IPO)
The Indo Farm Equipment Limited has just launched its IPO and the share sale is expected to commence on the 31/12/2024. The IPO consists of a 100 per cent new share sale of ₹184.90 crore and an Offer for Sale (OFS) of ₹75.25 crore by the promoter, Ranbir Singh Khadwalia. The funds raised will be utilized for:
Crane manufacturing capacity to be ramped up.
Repaying certain borrowings.
It has invested in its NBFC subsidiary Barota Finance Ltd.
It is anticipated that the IPO will add more financial freedom to the company’s operating model and serve to help its growth strategies.
Strategic Initiatives
To maintain its competitive edge, IFEL has undertaken several initiatives:
Innovation in its product line to fit the new market demands.
Enhancing market coverage by increasing its dealer outlets.
Exploring the best ways of spending in research and development that would create innovation.
Indo Farm Equipment Limited Strengths and Opportunities
Experienced Leadership
IFEL has been established under the direction of Managing Director Mr. Ranbir Singh Khadwalia, and it has earned a reputation for quality and creativity. But most significantly, the wealth of leadership experience in the company’s industry has driven the company’s growth.
We systematically benefit from strong manufacturing competencies.
The manufacturing systems of the company provide a seamless quality of production along with the flexibility to produce in the future.
Expanding Global Reach
Sales with other countries such as Nepal and Sudan for instance demonstrate the competitiveness of the company in the global market. Given the increased international demand for production of agricultural machinery, IFEL has great market prospects.
Technological Advancements
As a result of including advanced technologies within its products, IFEL meets the demands of users who expect to obtain reliable and efficient machinery.
Challenges and Risks
Competitive Market
The two industries are highly competitive with the existing players such as Mahindra & Mahindra and Escorts Limited posing a real threat.
Dependence on Monsoon
This is because the need for production of agricultural machinery is related with monsoon and crops and policy formulation, hence very sensitive to seasonality.
Working Capital Cycle
Operating cycle was at 245 days FY2024 mainly because of slow turnover of inventories. Working capital which is a part of the operating cycle is fundamental to the sustenance of the concept of profitability.
Future Outlook
It can be said that Indo Farm Equipment Limited has a good potential for the future. As the level of mechanization in agriculture and infrastructure development increases in India subsequently the demand for the company product will increase. Key drivers include:
The government has been playing an important role to mechanize the farming systems.
The fact that rural incomes are steadily growing and credit is becoming more easily accessible.
Civil construction projects that call for construction equipment.
The IPO is important in supplying enough cash, which the company intends to use in widening its operations and increasing its standing in the market. Moreover, entrepreneurial and innovative strategies of IFEL, commitments to sustainability allow the company to be ready for further and consistent development.
Conclusion
Indo Farm Equipment Limited has a long story to tell it all starting from the year 1994. Today, it is evident as a result of innovation, survival, and the vision of the management. Additionally, IFEL enjoys both a solid product offering and financial position and the visualization of the future directions ensure further successful advancement for the company in the years to come.
They can always look forward to an entailing process where the company remains to be an instrument towards transforming India’s agriculture and infrastructure.
FAQ'S
What are the Indo Farm Equipment Limited IPO dates ?
The Indo Farm Equipment Limited IPO opens on December 31, 2024, and closes on January 2, 2025.
What is the price band for the Indo Farm Equipment IPO ?
The price band is set between ₹204 and ₹215 per equity share.
What is the lot size for the Indo Farm Equipment Limited IPO GMP ?
Investors can bid for a minimum of 69 shares, amounting to ₹14,835 at the upper price band.
What is the total issue size of the Indo Farm Equipment IPO ?
The IPO aims to raise approximately ₹260 crore, comprising a fresh issue of 86 lakh equity shares and an offer for sale (OFS) of 35 lakh equity shares by the promoter.
