Indo Farm Equipment Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹215
Per ShareLot Size
69 Shares
Minimum Investment
₹14,835
Issue Size
₹260.15 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Indo Farm Equipment Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
93.45%
Promoter Holding (Post-Issue)
69.44%
Issue Type
Book Building
ISIN
INE622H01018
About the Company
Incorporated in 1994, our Company, Indo Farm Equipment Limited is a more than two decade old fully integrated established manufacturer of Tractors & Pick & Carry Cranes, with ancillary manufacturing of other farm equipments such as Harvester Combines, Rotavators and other related spares and components, which do not materially contribute to our total revenue of the company. As of Fiscal 2024, our business is broadly classified into Tractors 52.16%, Pick & Carry Cranes 47.77%, and Others 0.07%, representing the respective percentage contributions to our total revenue from sale of products. We also operate asset financing business (with focus on retail financing of tractors) through our wholly owned subsidiary named as "Barota Finance Limited", which is a RBI registered NBFC.
Industry Overview
The global tractor market is projected to grow from USD 84.80 billion in 2024 to USD 114.5 billion by 2029, at a CAGR of 5.90% during the forecast period. Tractor has been one of the most essential machineries in mechanising the agriculture activities globally. Globally the mobile crane market size is anticipated to grow from USD 21.10 billion in 2024 to USD 29.10 billion by 2029, at a CAGR of 6.65% during the forecast period. The global agriculture equipment market is projected to grow from USD 180.81 billion in 2023 to USD 296.61 billion by 2030, at a CAGR of 7.3% during the forecast period. *This Industry Report dated August 16, 2024 is prepared by the agency, B2K Analytics Private Limited (B2K Analytics) which is commissioned and paid-for by the Issuer Company, exclusively for the purpose of this Issue. We officially engaged B2K Analytics in connection with the preparation of the above mentioned Report pursuant to the engagement letter dated August 06, 2024.
Company History
Our Company "Indo Farm Equipment Limited", was originally incorporated as "Welcut Tools Private Limited" on October 05, 1994 at Chandigarh as a private limited company under the Companies Act, 1956 with the Registrar of Companies, Punjab, H.P. & Chandigarh. Further, our Company was converted into Public Limited Company pursuant to special resolution passed by the shareholders of our Company in their meeting held on June 29, 1999. There were multiple name changes of our Company between 1994 to 2009. Last name change of our Company was happened vide special resolution passed by the shareholders of our Company in their meeting dated October 24, 2009. We obtained a fresh Certificate of Incorporation on November 04, 2009 by Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh
Growth Strategy
- Augment capital base for scaling and expanding our operations.
- Reduce Debt Levels and improve Debt to Equity Ratio.
- Focus on the niche market of Pick and Carry Cranes.
- Augment our Dealer Network and Sales Force.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of up to 12,100,000 equity shares of face value of Rs. 10 each ("Equity Shares") of Indo Farm Equipment Limited (The "Company" or The "Issuer") for cash at a price of Rs. 215 per equity share, aggregating to Rs. 260.15 croress ("The Offer") comprising of a fresh issue of up to 8,600,000 equity shares aggregating to Rs. 184.90 croress (The "Fresh Issue") and an offer for sale of up to 3,500,000 equity shares by Ranbir Singh Khadwalia ("The Promoter Selling Shareholder") aggregating to Rs. 75.25 crores ("offer for sale"). The offer will constitute 25.18% of the fully diluted post offer paid-up equity share capital of the company. Further, the company, in consultation with the brlm, has undertaken pre-ipo placement of 1,900,000 equity shares of Rs. 10/- each at the rate of Rs. 185/- per share aggregating to Rs. 35.15 crores accordingly, the size of the fresh issue has been reduced from 10,500,000 equity shares to 8,600,000 equity shares of face value of Rs. 10 each. The relevant investors that have subscribed to the equity shares pursuant to the pre-ipo placements have, prior to the allotment of equity shares, been informed that there is no guarantee that the offer may come through or the listing may happen and accordingly, the investment was done by the relevant investors solely at their own risk.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Fully Integrated and established Manufacturing Setup.
- Well educated and experienced management.
- In-house NBFC Setup.
- Manufacturing Wide Range of Products.
- The company derives a significant portion of its revenue from the sale of tractors (approximately 52.16%) & Pick & Carry cranes (Approximately 47.77%) during the Fiscal 2024 and any reduction in demand or in the manufacturing of such products could have an adverse effect on its business, results of operations and financial condition.
- If the company is not able to obtain, renew or maintain its statutory and regulatory licenses, registrations and approvals required to operates its business, it may have a material adverse effect on the company's business, results of operations and financial condition.
- The company proposed expansion plans w.r.t its new manufacturing facilities being set up are subject to the risk of unanticipated delays in implementation and cost overruns.
- Average Capacity utilization for FY 2022 to FY 2024 is 32% for tractors and 87% for cranes. Under-utilization of our manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
- The company has not yet placed orders in relation to the capital expenditure to be incurred for the proposed expansion project. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the machines and equipments in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected.