Indo Farm Equipment GMP Day 3: Indo Farm Equipment IPO gets massive investors' response; subscribed whopping 227.57 times

The initial public offer of Indo Farm Equipment garnered a whopping 227.57 times subscription on the closing day of bidding on Thursday. The Rs 260-crore initial share sale received bids for 1,92,75,49,293 shares against 84,70,000 shares on offer, according to NSE data.

The portion for non-institutional investors fetched a mammoth 501.65 times subscription. The quota for Qualified Institutional Buyers (QIBs) received 242.40 times subscription while the category for Retail Individual Investors (RIIs) got subscribed 101.64 times.The IPO of Indo Farm Equipment got subscribed 17.70 times on the opening day of bidding on Tuesday. The company garnered a little over Rs 78 crore from anchor investors.

The issue has a price band of Rs 204-215 per share.The IPO comprises a fresh issue of 86 lakh equity shares and an Offer-for-Sale (OFS) of 35 lakh shares by promoter Ranbir Singh Khadwalia.

Proceeds from the fresh issue will be used to set up a new dedicated unit for expansion of the company's pick & carry cranes manufacturing capacity, payment of debt, investment in the company's NBFC subsidiary Barota Finance for financing the augmentation of its capital base to meet its future capital requirements.

Indo Farm Equipment manufactures tractors, pick & carry cranes and other farm equipment.

• Qualified Institutional Buyers (QIBs) - 242.34 times
• Non Institutional Investors(NIIS) - 498.48 times
• Retail Individual Investors (RIIs) - 97.80 times
• Total -- 224.96 times

• Indian states will have to pay an additional premium over central government securities to meet their record high borrowing target for the three months through March, which could further pressure banking liquidity conditions, investors said on Thursday.
• States aim to raise 4.73 trillion rupees ($55.22 billion) in January-March, highest-ever for any quarter, and nearly three-fourth the amount raised so far in this financial year.
• This, along with the central government's 2.79 trillion rupee debt sale, will take the overall supply to 7.52 trillion rupees. (Reuters)

Rupee ends at a closing record low of 85.75/$ against Wednesday’s close of 85.64/$

The latest GMP for the Indo Farm Equipment IPO is Rs 91, as per latest data by investorgain.com. With the price band set at Rs 215, the estimated listing price of the IPO is Rs 306 (cap price + today's GMP). This indicates an expected percentage gain of 42.33% per share.

• Qualified Institutional Buyers (QIBs) - 231.45 times
• Non Institutional Investors(NIIS) -- 485.19 times
• Retail Individual Investors (RIIs) -- 94.43 times
• Total -- 217.31 times

The Government of India has decided to constitute a Working Group for base revision of the current series of Wholesale Price Index (WPI) from base 2011-12 to 2022-23. Ramesh Chand, Member, NITI Aayog will be Chairman of the Working Group

• At the upper end of the price band, the IPO is priced at a P/E ratio of 66.2 times based on the FY24 earnings per share. Indo Farm is a prominent tractor and crane manufacturer in India, supported by a network of 175 dealers. The company has also diversified its product range, now producing cranes, harvesters, and rotavators, as noted by Indsec Research.
• The report highlights that the adoption of advanced technology in agriculture, combined with strong growth in infrastructure development, provides a favorable outlook for the company. Indo Farm has achieved a compound annual growth rate (CAGR) of 3% in revenue, 9% in EBITDA, and 7% in PAT over FY22-24, maintaining a strong operating profit margin (OPM) of 16.5%. Considering the positive industry trends and the company’s solid financial performance, Indsec Research has assigned a 'subscribe' rating to the IPO.

After a series of successful public listings in 2024, the startup initial public offering (IPO) party is set to carry over into the new year, buoyed by healthy public market activity and the strong performance of already-listed startups. At least 25 new-age companies are expected to go public in 2025, according to a list compiled by Moneycontrol, a significant increase from 13 in 2024. Should all these listings materialise, it would mark the highest number of startup IPOs in a single calendar year, setting a new record. (Read More)

Zepto, the quick-commerce unicorn, has set up a new entity, Zepto Marketplace Private Limited, to simplify its operations ahead of its IPO later this year, according to sources familiar with the development. The company currently operates under a business-to-business (B2B) model. Its Indian arm, Kiranakart Technologies Pvt Ltd—founded by Aadit Palicha and Kaivalya Vohra—procures goods from brands and sells them exclusively to a fixed set of companies managing the Zepto platform under a licensing agreement for consumer-facing sales. (Read More)

• Qualified Institutional Buyers (QIBs) -- 60.90 times
• Non Institutional Investors(NIIS) -- 365.61 times
• Retail Individual Investors (RIIs) -- 79.86 times
• Total -- 135.68 times
• Source - BSE

Auto stocks hit the fast lane on December 2, with heavyweights like Eicher Motors, Bajaj Auto, Hero MotoCorp, M&M, Maruti Suzuki, and Tata Motors roaring ahead by up to 7 percent. The rally fueled the Nifty Auto index to its biggest single-day gain in six months, turbocharged by better-than-expected sales figures. (Read More)

Vodafone Idea (Vi) is set to benefit significantly from the government’s recent decision to waive bank guarantee (BG) requirements for telecom operators, potentially unlocking crucial funding for the cash-strapped company. Analysts believe this move resolves a major deadlock that has hindered Vi from securing debt financing which was contingent on the BG waiver as well as further conversion of regulatory dues into equity in the beleaguered company. (Read More)

The stock markets in India extended gains on January 2 with the benchmark indices surging over 1 percent each. Sensex surged over 1,000 points and the Nifty 50 moved above the crucial 23,950 level to rally past 200-DMA, helped by buying in banking and IT stocks, optimism around quarterly earnings and a favourable technical setup. (Read More)

• Qualified Institutional Buyers (QIBs) - 25.09 times
• Non Institutional Investors(NIIS) - 300.29 times
• Retail Individual Investors (RIIs) - 71.70 times
• Total - 107.37 times

Indian rupee again came under pressure in the early trade on January 2 as the strong demand for dollar continues, decline in the offshore Chinese yuan, and foreign fund outflows by foreign portfolio investors, currency experts said.  At 10:50 AM, Indian rupee was trading 12 paise lower at 85.7625 against the US dollar, as compared to 85.7113 at open and 85.6488 at close in previous trading session against the greenback.  (Read More)

• Qualified Institutional Buyers (QIBs) - 12.09 times
• Non Institutional Investors(NIIS) - 239.11 times
• Retail Individual Investors (RIIs) - 65.27 times
• Total - 87.33 times

Despite continued challenges, the fund house believes that 2025 could be an opportunity for large caps. The report suggests that large caps, which are currently undervalued compared to broader indices like the Nifty 500, present an investment case for them to outperform other segments in 2025. (Read More)

• Manufacturing firms continued their hiring streak for the 10th consecutive month, with December recording the fastest pace of job growth since August.
• Meanwhile, goods producers leveraged the slower increase in costs by passing on a portion of the burden to clients. The output prices sub-index declined less in December compared to input prices. S&P Global noted that strong demand resilience bolstered pricing power.

The HSBC Final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, slipped to 56.4 in December, marking the weakest reading since December 2023. This was slightly down from November's 56.5 and fell short of an earlier estimate predicting a rise to 57.4.

India's manufacturing activity in December 2024 slowed to its weakest pace of the year, despite easing cost pressures and robust job growth. The HSBC Final PMI registered a slight decline from November, reflecting slower improvements in output and new orders. While international demand supported exports, business sentiment and the outlook for future growth weakened.

India’s manufacturing activity closed the year at a 12-month low of 56.4 in December compared with 56.5 in the previous month

• Indo Farm Equipment offers investors an opportunity to invest in a fully integrated and well-researched manufacturer of agricultural and construction equipment. The company's business model is built on three rewarding segments: tractors, pick-and-carry cranes, and its NBFC arm. Indo Farm manufactures a diverse range of tractors, from 16 HP to 110 HP, and pick-and-carry cranes with capacities ranging from 9 tons to 30 tons.
• A portion of the IPO proceeds will be invested in Barota Finance, aiming to strengthen the dealer network and boost tractor sales.
• From a valuation perspective, at the upper price band of Rs 215, the IPO implies a market capitalization of Rs 10,331 million and an EV/EBITDA multiple of 17, excluding the impact of interest expenses. Based on FY24 earnings, the company is priced at a PE ratio of 65x, indicating a fully valued offering.
• With a solid foundation in traditional business values, experienced promoters, planned capacity expansion, debt repayment, and strategic strengthening of its financial arm, Indo Farm is well-positioned for long-term growth. Considering these factors, we recommend subscribing to the issue for the long term.

Undoubtedly, there are many dark clouds in 2025 that can impact economic growth, Nilesh Shah of Kotak Mahindra AMC said in an interview to Moneycontrol. According to him, global factors like heightened geopolitical tensions, the second term of President Trump, and Indo-China relations will continue to impact growth. (Read More)

According to the latest data from investorgain.com, the grey market premium (GMP) for the Indo Farm Equipment IPO currently stands at Rs 90. If this premium persists, the IPO is expected to have a strong positive listing.

Indo Farm Equipment IPO Update: The Indo Farm Equipment IPO has been subscribed 54.50 times as of the end of the second day of bidding. According to NSE data on Wednesday, the issue received bids for 46.16 crore equity shares against 84.70 lakh shares on offer. The Retail Investors category has been subscribed 45.70 times, the Non-Institutional Investors (NII) segment 131.78 times, and the Qualified Institutional Buyers (QIBs) portion 11.96 times.

The Indian rupee could find some relief on Thursday as most of its Asian peers ticked higher and with the currency near levels at which the central bank had intervened aggressively.

The 1-month non-deliverable forward indicated that the rupee will open flat-to-slightly higher from its close of 85.6450 per US dollar in the previous session. The offshore Chinese yuan inched up 0.2%, while the Korean won, the Thai baht and the Philippine peso strengthened by 0.4%.

Chinese stocks fell on the first trading day of the New Year as weak economic data and the prospect of more US tariffs hurt sentiment.

Benchmarks on the mainland and in Hong Kong retreated after figures showed China’s manufacturing activity slowed its pace of expansion in December. The MSCI Asia Pacific Index edged lower, while US equity futures climbed. Japanese markets are closed through January 6 and New Zealand remains on holiday.

China’s manufacturing activity slowed its pace of expansion in December, as investors wait for more economic stimulus when Donald Trump — who is threatening tariffs on Chinese exports — returns to the White House.

The Caixin manufacturing purchasing managers index fell to 50.5 from 51.5 in November, according to a statement released by Caixin and S&P Global on Thursday. While any reading above 50 indicates an expansion of activity, the figure was a disappointment compared with the median forecast of 51.7 by economists.

China is keeping its hand firmly on the yuan, supporting the currency via the official daily reference rate after it slid to the weakest level since 2022 at year-end in offshore trading.

The People’s Bank of China set the so-called fixing, which confines yuan’s trading onshore to a 2% range on either side, at 7.1879 per dollar on Thursday. That’s little changed from the prior reading. But it was 1,323 pips stronger than forecast in a Bloomberg survey, the largest difference since July.

China’s currency has come under pressure in recent months amid persistent concern about the country’s growth and escalating trade tensions with the US as President-elect Donald Trump threatens higher tariffs.

Indo Farm Equipment Limited reported a 1% increase in revenue and a 1% growth in profit after tax (PAT) between the financial years ending March 31, 2023, and March 31, 2024.

• Founded in 1994, Indo Farm Equipment Limited specializes in manufacturing tractors, pick-and-carry cranes, and various harvesting equipment.
• The company operates under two brands, Indo Farm and Indo Power, and exports its products to international markets, including Nepal, Syria, Sudan, Bangladesh, and Myanmar.
• Indo Farm Equipment produces tractors ranging from 16 HP to 110 HP and pick-and-carry cranes with capacities ranging from 9 to 30 tons. Its manufacturing facility, located in Baddi, Himachal Pradesh, spans 127,840 square meters and features a foundry, machine shop, and assembly units. The company boasts an annual production capacity of 12,000 tractors and 1,280 pick-and-carry cranes.

If the Nifty 50 sustains above 23,700, the first target would be 23,900, followed by 24,000, a key resistance zone. However, failure to maintain levels above 23,700 could pull the index down toward the 23,600–23,500 range, experts suggested. (Read More)

The Indo Farm Equipment IPO secured Rs 78.05 crore from anchor investors. The anchor bidding for the IPO took place on December 30, 2024.

The company is promoted by Ranbir Singh Khadwalia and Sunita Saini.

Investors are required to bid for a minimum of 69 shares, with additional bids to be made in multiples of this lot size.

Aryaman Financial Services Limited is serving as the book-running lead manager for the Indo Farm Equipment IPO, with Mas Services Limited acting as the registrar for the issue.

• The Indo Farm Equipment IPO has been priced with a band ranging between Rs 204 and Rs 215 per share. Investors can apply for the IPO in minimum lot sizes, with each lot consisting of 69 shares. For retail investors, the minimum investment required amounts to Rs 14,835.
• For small Non-Institutional Investors (sNII), the minimum application requires 14 lots, equating to 966 shares, which amounts to an investment of Rs 2,07,690. Similarly, for large Non-Institutional Investors (bNII), the minimum application is set at 68 lots, corresponding to 4,692 shares, requiring a total investment of Rs 10,08,780. This tiered structure ensures participation opportunities across different investor categories.

The bidding period for the Indo Farm Equipment IPO began on December 31, 2024, and concluded on January 2, 2025. The allotment of shares is anticipated to be finalized on Friday, January 3, 2025. The IPO is set to list on the BSE and NSE, with the tentative listing date scheduled for Tuesday, January 7, 2025.

Today is the last opportunity to subscribe to the Indo Farm Equipment IPO. This public offering is structured as a book-built issue with a total size of Rs 260.15 crore. It includes a fresh issue of 0.86 crore equity shares, raising Rs 184.90 crore, and an offer for sale (OFS) of 0.35 crore shares, contributing Rs 75.25 crore. The IPO presents investors with a mix of newly issued shares and shares sold by existing stakeholders. Stay tuned for live updates on the Grey Market Premium (GMP) for the Indo Farm IPO to gauge market sentiment and potential listing performance.