Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) Detail Review –
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) is set to open for subscription from 31st Dec 2024 to 2nd Jan 2025. In this article we will analyze the financials , strengths and weaknesses of the Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO). Keep scrolling below to read more!
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) Overview –
Established in 1994, Indo Farm Equipment Limited is engaging in manufacturing Tractors, Pick & Carry Cranes, and other harvesting equipment.
The Company operates two brands: Indo Farm and Indo Power, They export their products to countries like Nepal, Syria, Sudan, Bangladesh, Myanmar, etc.
The Company manufactures tractors range 16 HP to 110 HP and pick & carry cranes range 9 to 30 tons. The facility in Baddi, Himachal Pradesh, spans 127,840 sq. meters and includes a foundry, machine shop, and assembly units. The Company has 12000 tractors and 1,280 Pick & Carry Cranes production capacity annually.
The Company spans 127,840 sq. meters of industrial land in Baddi, Himachal Pradesh, housing a captive foundry, machine shop, and fabrication and assembly units for tractors, pick & carry cranes, and other equipment.
They have acquired additional industrial land near the current facility to build a new pick & carry crane manufacturing unit, aiming to increase capacity by 3,600 units per year.
As of June 30, 2024, They had 938 employees on payroll.
Competitive Strengths:
- Fully Integrated and established Manufacturing Setup
- Well Educated & Experienced Management
- In-House NBFC Setup
- Manufacturing Wide Range of Products
- Product acceptability in multiple countries and a wide variety of financial institutions
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) Synopsis –
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) is set to be open for subscription from 31st Dec 2024 to 2nd Jan 2025, offering combination of fresh issue of 0.86 crore shares aggregating to Rs 184.90 crores and offer for sale of 0.35 crore shares aggregating to Rs 75.25 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Tuesday, January 7, 2025.
The total issue size of this IPO amounts to Rs. 260.15 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 31st Dec 2024 |
| Closing Date | 2nd Jan 2025 |
| Lot Size | 69 Shares |
| Face Value | Rs 10 |
| IPO Size | Rs. 260.15 Cr |
| Fresh Issue | Rs. 184.90 Cr |
| IPO Price Range | Rs. 204 – 215 |
| Min. Investment | Rs. 14,835 |
| Offer for Sale (OFS) | Rs. 75.25 Cr |
| Employee Discount | — |
| Basis of Allotment | 3rd Jan 2025 |
| Refunds | 6th Jan 2025 |
| Listing Date | 7th Jan 2025 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) Market Lot –
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) minimum market lot is 69 shares with ₹14,835 application amount. The retail investors can apply up to 13 lots with 897 shares or ₹1,92,855 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 69 | ₹14,835 |
| Retail Maximum | 13 | 897 | ₹1,92,855 |
| S-HNI Minimum | 14 | 966 | ₹2,08,810 |
| S-HNI Maximum | 67 | 4,623 | ₹9,93,945 |
| B-HNI Minimum | 68 | 4,692 | ₹10,08,780 |
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) Book Running Lead Managers –
- Aryaman Financial Services Limited
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) Promoters –
Ranbir Singh Khadwalia
Sunita Saini.
Pre-Issue Promoter Shareholding | 93.45% |
Post-Issue Promoter Shareholding | 69.44% |
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) Registrar to the offer –
The registrar for the Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) is Mas Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
Establishing a new dedicated unit to increase their manufacturing capacity for pick-and-carry cranes.
Full or partial repayment or prepayment of some of the company’s borrowed funds.
Additional funding for the expansion of NBFC Subsidiary Barota Finance Ltd.’s capital base to satisfy its future capital needs.
Key Performance Indicator –
The market capitalization of Indo Farm Equipment Limited is Rs 1,033.11 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | 5.13% |
| ROCE: | 8.96% |
| EBITDA Margin: | 16.66% |
| PAT Margin: | 4.16 |
| Debt to equity ratio: | 0.97 |
| Earning Per Share (EPS): | ₹4.15 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 4.92% |
| Net Asset Value (NAV): | ₹86.75 |
Financial Status –
Indo Farm Equipment Limited’s revenue increased by 1% and profit after tax (PAT) rose by 1% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 31 June 2024.
The company’s total assets are Rs. 644.27 crore.
The company’s total revenue is Rs. 75.54 crore.
The company’s PAT is Rs. 2.45 crore.
The company’s net worth is Rs. 342.25 crore
| Period Ended | 30 June 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | ||||||||||||||||||||||||||||||||||||
| Total Assets | 644.27 | 647.95 | 622.84 | 619.83 | ||||||||||||||||||||||||||||||||||||
| Revenue from operations | 75.54 | 375.95 | 371.82 | 352.52 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | 2.45 | 15.6 | 15.37 | 13.72 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 342.25 | 317.06 | 290.37 | 274.8 | ||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | ||||||||||||||||||||||||||||||||||||||||
| Total Borrowing | 245.36 | 270.54 | 280.65 | 275 | ||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Evaluation of P/E Ratio :
Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.15 from the last year, the resulting P/E ratio is 51.80x
Considering the weighted EPS of Rs.4.05 for the last three years, the P/E ratio is 53.08x
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 42.10x.
In simple words, the P/E ratio of this IPO (51.80x), compared with the industry’s average P/E of 42.10x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.
Peers of Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) –
Indo Farm Equipment Limited peer comparison with similar listed entities.
| Company Name | EPS | NAV | P/E (x) | RoNW (%) | P/BV Ratio |
|---|---|---|---|---|---|
| Indo Farm Equipment Limited | 4.15 | 84.43 | 4.92 | ||
| Escorts Kubota Limited | 96.24 | 830.43 | 36.79 | 11.44 | 2.28 |
| Action Construction Equipment Ltd. | 27.56 | 103.28 | 47.42 | 30.78 | 10.23 |
Dividend Policy –
The company has not paid a dividend in the last three FYs.
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) Strengths –
Completely consolidated and simplified manufacturing setting.
Highly educated and experienced management.
On-Site NBFC Configuration.
Manufacture a wide range of products.
International acceptability of products and several financial institutions.
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) Weakness –
Dependence on External Resources: tractor demand changes according to government policies, agricultural subsidies, diesel price indexation, availability of bank credit, and season. Any adverse changes will deeply impact all the business operations.
Volatility associated with raw material costs: The costs of raw materials account for the highest cost incurred by the company, and hence, will be very vulnerable to pressures of the market. Without long-term supplier contracts, the company will suffer constantly from price volatility, thus affecting profitability margins.
Strong Competition: The company competes with many other Indian and international companies, some of which are much larger in both their scales of operation and resources. This would result in a loss of market share or larger spending on marketing.
Regulatory and Compliance Risks: There may be newly introduced compliance requirements due to the changing laws and regulations in India. This can lead to increased operating costs or curtail business growth and result in legal uncertainty.
Impact of Macroeconomic Conditions: The business works under the global and domestic picture of economic conditions such as inflation, interest rate changes, and political instability. These things can affect financial performance and investor confidence negatively.
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) Status –
Indo Farm Equipment Limited IPO (Indo Farm Equipment IPO) allotment status will be available on the Mas Services Limited website. Click on this link to get allotment status.
Disclaimer –
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing. Subscribe only after considering fundamentals of the companies.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
