Indo Farm Equipment’s IPO consists of a fresh issue INR 1.05 crore and an offer to sell 350 crore of existing equity shares. The company will use the funds raised to establish a dedicated unit, repay loans, invest in an NBFC subsidiary, and cover general corporate purposes for expansion.
Indo Farm Equipment IPO – Important Details
| Indo Farm Equipment IPO Date | NA |
| Indo Farm Equipment IPO Listing Date | NA |
| Indo Farm Equipment IPO Price | NA |
| Indo Farm Equipment IPO Lot Size | NA |
| Indo Farm Equipment IPO Total Issue Size | NA |
| Indo Farm Equipment IPO Basis of Allotment | NA |
| Indo Farm Equipment IPO Initiation of Refunds | NA |
| Indo Farm Equipment IPO Credit of Shares to Demat | NA |
| Indo Farm Equipment IPO Issue Type | Book Built Issue IPO |
| Indo Farm Equipment IPO Listing At | BSE, NSE |
Indo Farm Equipment Limited IPO – Company Profile
Established in 1994, Indo Farm Equipment Limited is a fully integrated manufacturer with over two decades of experience, producing world-class Tractors, Pick & Carry Cranes, Harvester Combines, Rotavators, and related spares & components for agricultural needs.
Since 1994, the company’s ISO 9001:2015 certified facilities in Baddi, Himachal Pradesh, span 127,840 sq. m., housing integrated operations for efficient production and control over critical components. This supports domestic and export Tractor, crane, and other equipment sales.
We evolved from importing engines to pioneering pick-and-carry cranes. We’ve built a profitable ecosystem with a captive foundry, in-house NBFC, and 140+ dealers. Our 2023 financials reflect robust performance and 886 employees.
Indo Farm Equipment Limited IPO – Fundamental Analysis
Indo Farm Equipment Ltd. shows a positive trend in revenue, profitability, and efficiency in asset management. The steady RoNW and EPS growth are encouraging signs for potential investors. However, the decrease in NAV per share needs to be examined more closely.
Revenue Growth:
There has been a steady increase in revenue from INR 2,677.81 million in 2021 to INR 3,707.59 million in 2023, indicating consistent growth in sales.
Equity Trend:
Equity has also seen a consistent increase from INR 2,612.46 million in 2021 to INR 2,905.66 million in 2023, showing a strengthening of the company’s financial position.
Expenses:
Expenses have increased in line with revenue, suggesting controlled spending relative to sales.
Profit After Tax:
The company’s net profit has shown a positive trend, growing from INR 84.92 million in 2021 to INR 155.64 million in 2023.
Return on Net Worth (RoNW):
There’s an upward trend in RoNW, from 3.25% in 2021 to 5.36% in 2023, indicating more efficient use of equity.
Net Asset Value (NAV) per Equity Share:
The NAV per share shows a decrease, which might need further analysis to understand the underlying reasons.
Earnings Per Share (EPS):
There’s a consistent increase in EPS from INR 2.26 in 2021 to INR 4.14 in 2023, suggesting higher profitability per share.
Total Assets and Liabilities:
The company’s total assets have increased slightly, with a corresponding increase in liabilities. The debt-to-equity ratio has remained stable.
Liquidity Ratios:
The current ratio has remained stable around 1.43, indicating good short-term financial health. The inventory turnover ratio has improved, suggesting more efficient inventory management.
Indo Farm Equipment Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (INR in Million) | 2,677.81 | 3,520.84 | 3,707.59 |
| Equity (INR in Million) | 2,612.46 | 2,748.03 | 2,905.66 |
| Expenses (INR in Million) | 2,567.01 | 3,333.39 | 3,495.69 |
| Profit and Loss After Tax (INR in Million) | 84.92 | 137.19 | 155.64 |
| RoNW (%) | 3.25 | 4.99 | 5.36 |
| NAV per Equity Share (INR) | 278.31 | 146.36 | 154.76 |
| Diluted EPS only (INR) | 2.26 | 3.65 | 4.14 |
| Total Assets (in million) | 5,513.76 | 6,198.29 | 6,228.41 |
| Total Liabilities (in million) | 2,901.3 | 3,450.26 | 3,322.75 |
| Debt Equity Ratio | 0.89 | 1.00 | 0.97 |
| Current Ratio | 1.47 | 1.43 | 1.43 |
| Inventory Turnover Ratio | 1.10 | 1.31 | 1.38 |
Indo Farm Equipment Limited IPO – Peer Comparison
Indo Farm Equipment Limited, with revenue of INR 3,707.59 million, has lower revenue but higher EPS (INR 4.14) compared to Action Construction Equipment. Its RoNW (5.36%) is lower than both Escorts Kubota and Action Construction, indicating differing financial efficiencies.
| Company | Revenue (INR in million) | Face Value per Equity Share (INR) | P/E | EPS (INR) | RoNW (%) | NAV per Equity Share (Basic) (INR) |
| Indo Farm Equipment Limited | 3707.59 | 10 | NA | 4.14 | 5.36 | 77.38 |
| Escorts Kubota Limited | 84,286.90 | 10 | 54.95 | 58.85 | 7.78 | 620.19 |
| Action Construction Equipment Limited | 21,596.75 | 2 | 46.71 | 14.41 | 19.37 | 77.27 |
Indo Farm Equipment Limited IPO Objective
The main objective of Indo Farm Equipment’s IPO is to establish a new Pick & Carry Cranes expansion unit. Other objectives include meeting the project costs, borrowings repayment, NBFC subsidiary investment, and general corporate purposes.
- Setting up a new dedicated unit for expansion of their Pick & Carry Cranes Manufacturing Capacity: They intend to invest INR 70.615 crore in diverse areas such as land, land development, factory construction, and machinery. The entire project cost will be funded through the Net Proceeds of the Offer, facilitating comprehensive project establishment and development.
- Repayment borrowings availed by the company: The company plans to utilize INR 60 crore from the Net Proceeds towards full or partial repayment or pre-payment of certain borrowings. The company aims to meet financial needs with Term loans, Business Loans, WCTL facilities, Vehicle loans, and working capital loans from diverse sources.
- Further Investment in their NBFC Subsidiary (Barota Finance Ltd.) for financing the augmentation of its capital base to meet its future capital requirements: The company intends to utilize INR 45 crores to make a further investment in our NBFC subsidiary i.e. BFL for its future growth.
- General Corporate Purposes: The company plans to deploy the balance funds towards the general corporate goals, including strategic initiatives, partnerships, joint ventures, and acquisitions, reducing consolidated debt levels, and meeting contingencies.
Indo Farm Equipment Ltd IPO Risks and Challenges
Indo Farm Equipment faces significant risks from legal proceedings, potential uncertainties in Pick & Carry Crane expansion, and capital expenditure plans. Resolving legal matters favorably and addressing potential setbacks is crucial for sustained growth.
- Legal proceedings involving their companies, Promoters, Directors, and Subsidiaries pose a substantial risk. Adverse decisions could significantly impact business, results, and financial conditions, emphasizing the importance of resolving legal matters favorably.
- Their proposed manufacturing capacity expansion for Pick & Carry Cranes faces uncertainties, including delays, regulatory restrictions, and unforeseen costs. Any setbacks could adversely impact our growth, prospects, and financial condition.
- They plan to use Net Proceeds for capital expenditure in their manufacturing facility, but firm orders have yet to be placed. Potential delays, cost escalations, and uncertainties in raw material procurement may impact their business adversely.
Indo Farm Equipment Ltd IPO – Industry & Market Potential
The global agriculture equipment market is expected to reach USD 296.61 billion by 2030, driven by a CAGR of 7.3%. The industry’s growth is fueled by increasing food demand, making agricultural machinery crucial for enhancing efficiency and boosting yields.
Farm agri equipment encompasses machines and tools aiding farming activities. The Indian Agricultural Machinery Market is valued at USD 15.42 billion in 2023, with an expected growth to USD 23.18 billion by 2028 at a CAGR of 8.50%.
The cyclical vehicle finance, linked to the macroeconomic environment, is poised for recovery post-pandemic. Expectations of increased asset sales, improved semiconductor supply, and a surge in used vehicle transactions project a 12-14% growth in vehicle finance AUM over the next two fiscal years.
Indo Farm Equipment Ltd IPO – Type of Offer
Indo Farm Equipment plans a fresh issue of shares, seeking INR 1.05 crores to augment the capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 350 crore existing shares.
1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 1.05 crores. The company intends to utilize the proceeds from the fresh issue to establish dedicated unit, repay loans, invest in NBFC subsidiary, and cover general corporate purposes for expansion.
2. Offer for sale: Indo Farm Equipment is offering to sell 350 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in million) |
| Ranbir Singh Khadwalia | 3,500,000 |
Indo Farm Equipment Ltd IPO Offer Size
The offer size is Indo Farm Equipment’s plans to launch an IPO consisting of new issuance of shares totaling INR 1.05 crores and the sale of 350 crores of existing equity shares. The funds generated will be utilized to establish dedicated units, repay loans, invest in NBFC subsidiaries, and cover general corporate purposes for expansion.
Indo Farm Equipment Ltd IPO Allotment Structure
Indo Farm Equipment allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with 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 IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Indo Farm Equipment IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the Indo Farm Equipment Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: Post 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 to Check Indo Farm Equipment IPO Allotment Status on Alice Blue?
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 their 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 IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Indo Farm Equipment 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, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Indo Farm Equipment IPO:
Registrar’s Website: Visit the website of MAS Services Limited, the registrar of the Indo Farm Equipment IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Indo Farm Equipment IPO Offer Registrar
The registrar for the Indo Farm Equipment 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 IPO FAQs
What is the allotment date of the Indo Farm Equipment IPO?
The allotment date of the Indo Farm Equipment IPO has not yet been announced.
What is the price band of the Indo Farm Equipment IPO?
The price band of the Indo Farm Equipment IPO has not yet been announced.
What is the size of the Indo Farm Equipment IPO?
Indo Farm Equipment plans to launch an Initial Public Offering (IPO). This comprises a new share issuance of INR 1.05 crores and the sale of 350 crores of existing equity shares. The funds generated will be utilized to establish dedicated units, repay loans, invest in NBFC subsidiaries, and cover general corporate purposes for expansion.
What is the listing date of the Indo Farm Equipment IPO?
The listing date of the Indo Farm Equipment IPO has not yet been announced.
