Indo Farm Equipment Limited is coming up with an IPO consisting of a fresh issue of 1.05 crore shares and an offer to sell 0.35 crore existing shares. The company aims to expand crane manufacturing, repay borrowings, and invest in NBFCs for general purposes. 

Indo Farm Equipment IPO – Important Dates 

Indo Farm Equipment Limited IPO – Company Profile 

Incorporated in 1994, Indo Farm Equipment Limited manufactures tractors, cranes, and farm equipment in ISO 9001:2015-certified facilities in Himachal Pradesh. It ensures in-house production, streamlined operations, and competitive delivery for domestic and export markets. 

Indo Farm began operations in 2000, indigenised engine technology, added foundry and cranes, launched an NBFC in 2017 for tractor financing, and built an integrated ecosystem with 140+ dealers across central Indian states. 

Indo Farm’s R&D Centre develops indigenous tractor and crane technologies, including efficient combustion chambers that ensure low fuel consumption. Backward integration enables managing diverse product variants and offering customised solutions to customers. 

Indo Farm Equipment Ltd IPO Fundamental Analysis 

Indo Farm Equipment Limited’s financial analysis reveals a mixed performance. Revenue shows steady growth, liabilities indicate expansion, profitability and EPS improved, RoNW increased, but liquidity weakened despite better inventory turnover and asset growth. 

• Revenue Trend: The revenue increased from ₹2,677.81 millions in March 2021 to ₹3,520.84 millions in March 2022. The revenue for the current year’s 12-month period ending March 2023 is INR 3,707.59 million. 
• Equity and Liabilities: Liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹84.92 million in March 2021 to ₹155.64 million by March 2023. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹2.26 in March 2021 to ₹4.14 by March 2023, reflecting higher earnings per share for investors. 

• Return on Net Worth (RoNW): The RoNW has increased from 3.25% to 5.36%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover   Ratio, which might suggest faster sales or efficient inventory management. 

Indo Farm Equipment IPO Financial Analysis 

Indo Farm Equipment Limited IPO Peer Comparison 

Indo Farm Equipment focuses on steady profitability and returns, while Escorts Kubota leads with strong earnings and market presence. Action Construction excels in efficiency and profitability with impressive growth metrics and competitive returns. 

Indo Farm Equipment Ltd IPO Objective 

The main objective of Indo Farm Equipment Limited is to expand crane manufacturing, reduce borrowings, and invest in its NBFC subsidiary to strengthen its capital base for future financial growth and requirements. 

1. Setting up a new Dedicated Unit for expanding pick-and-carry Crane Manufacturing Capacity: The company intends to utilise INR 70.615 crores from the offer proceeds to set up a dedicated Pick-and-Carry Crane production facility, increasing annual capacity by 3,600 cranes to meet the growing market demand. 

2. Repayment or prepayment, in whole or part, of certain borrowings availed by the company: The company plans to utilise INR 60 crores from the net proceeds for the full or partial repayment of borrowings, aiming to reduce debt, improve debt-to-equity ratio, and support future business growth and expansion. 

3. Further Investment in NBFC Subsidiary (Barota Finance Ltd.) to finance the augmentation of its capital base to meet its future capital requirements: The company aims to utilise INR 45 crores from the net proceeds to enhance Barota Finance Ltd.’s capital base, support future growth in its NBFC business, and offer flexible financing solutions for customers. 

4. General Corporate Purposes:  The company will deploy funds for general corporate purposes, including strategic initiatives, partnerships, joint ventures, acquisitions, reducing consolidated debt, renovating facilities, brand promotion activities, and addressing business exigencies. 

Indo Farm Equipment IPO Risks And Challenges 

Indo Farm Equipment Limited’s risk includes involvement in legal proceedings, dependency on agricultural conditions and government policies, exposure to economic or environmental disruptions, and reliance on timely statutory licenses and approvals, some of which are pending. 

• The company, promoters, directors, and subsidiaries are involved in various legal proceedings, including criminal, tax, and civil cases, with quantifiable amounts totalling ₹170.48 million. The outcome may impact business, financials, and reputation. 

• The company’s revenue growth depends on factors like agricultural conditions, government policies, credit availability, competition, and infrastructure development. Any unfavourable economic, political, or environmental events could negatively impact its business, operations, and financial condition. 

• The company requires various statutory licenses and approvals to operate. Delays, renewals, or failures to obtain these approvals may disrupt operations and adversely affect business, with some applications still pending as of the prospectus date. 

Indo Farm Equipment Ltd IPO – Industry & Market Potential 

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%, driven by rising food demand, population growth, and efficient farming needs. 

The India Agricultural Machinery Market, valued at approximately USD 15.42 billion in 2023, is expected to reach USD 23.18 billion by 2028, growing at a CAGR of 8.50%, driven by rising agricultural demands and technological advancements in farming. 

The global tractor market, valued at USD 78.98 billion in 2023, is expected to reach USD 104.69 billion by 2030, growing at a CAGR of 5.80%. Post-pandemic recovery, government initiatives, and innovation drive demand for tractors. 

Indo Farm Equipment Limited IPO – Type of Offer

Indo Farm Equipment Limited plans a fresh issue of 1.05 crore shares to expand crane manufacturing, repay borrowings, invest in NBFC, and for general purposes. Additionally, the company proposes an offer to sell 0.35 crore existing shares. 

1. Fresh Issue: The company will issue 1.05 crore new shares to raise capital. The company intends to utilise the proceeds from the fresh issue to expand crane manufacturing, repay borrowings, invest in NBFC, and for general purposes.
2. Offer for sale: Indo Farm Equipment Limited is offering to sell 0.35 existing shares. The following are the details of the existing shareholder, who is also the promoter selling the shares:

Indo Farm Equipment IPO Offer Size 

The offer size of Indo Farm Equipment Limited is yet to be announced, consisting of a fresh issue of 1.05 crore shares and an offer to sell 0.35 crore existing shares. The company aims to expand crane manufacturing, repay borrowings, and invest in NBFCs for general purposes. 

Indo Farm Equipment Limited IPO Allotment Structure 

Indo Farm Equipment Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for an Indo Farm Equipment IPO?

To apply for the Indo Farm Equipment Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Indo Farm Equipment Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Indo Farm Equipment Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Indo Farm Equipment IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Indo Farm Equipment Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Indo Farm Equipment Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Indo Farm Equipment Limited IPO:

● Registrar’s Website: Visit the website of MAS Services Limited, the registrar of the Indo Farm Equipment Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Indo Farm Equipment Ltd IPO Offer Registrar

The registrar for the Indo Farm Equipment Limited IPO is MAS Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

MAS Services Limited

T-34 2nd floor, Okhla industrial area phase II, 

New Delhi 110020, India.

Tel: 011-26387281-83, 011-41320335; 

Email: [email protected] ;

Website: www.masserv.com 

Indo Farm Equipment SME IPO – FAQs