IPO GMP News / The GMP of this IPO is ₹ 80 per share, it was subscribed 17.70 times on the very first day

IPO GMP News: The initial public offering (IPO) of Indo Farm Equipment Limited witnessed an exceptional response on its opening day. According to NSE data, the IPO was subscribed 17.70 times. Against an offer of 8,470,000 shares, investors placed bids for 149,960,184 shares, reflecting robust participation.

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Subscription Breakdown

• Non-Institutional Investors (NII): 28.56 times subscription
• Retail Individual Investors (RII): 18.54 times subscription
• Qualified Institutional Buyers (QIB): 8.10 times subscription

The overwhelming response is attributed to the company’s performance, expansion plans, and the attractive price band of the IPO.

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Key Details of the Issue

• Price Band: ₹204-₹215 per share
• IPO Size: ₹260 crore
  • 86 lakh equity shares: Fresh issue
  • 35 lakh equity shares: Offer for sale (OFS) by promoter Ranbir Singh Khadwalia
• Closing Date: January 2, 2024
• Funds Raised from Anchor Investors: ₹78 crore

Indo Farm plans to utilize the raised capital to expand its pick-and-carry crane manufacturing capacity, repay debt, and invest in its NBFC subsidiary "Barota Finance" to establish a new dedicated unit.

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Company Profile and Market Capitalization

Indo Farm Equipment Limited is a leading manufacturer of agricultural equipment, tractors, and pick-and-carry cranes. At the upper price band, the IPO size is ₹260 crore, pushing the company's market capitalization to over ₹1,000 crore.

• Book-Running Lead Manager: Aryaman Financial Services
• Listing Platforms: BSE and NSE

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Grey Market Premium (GMP)

The shares of Indo Farm Equipment Limited also performed impressively in the grey market. On Tuesday, the IPO’s GMP was ₹80 per share.

• Issue Price: ₹215 per share
• Grey Market Price: ₹295 per share
• Premium Growth: 37%

This indicates that investors are anticipating excellent returns upon listing.

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Why is Indo Farm IPO Attractive?

1. Expertise in Agricultural and Industrial Equipment:
   The company is an established brand in the agricultural equipment and crane segments.

2. Expansion Plans:
   Setting up a new crane manufacturing unit and debt repayment will strengthen the company’s balance sheet.

3. Market Trends:
   Rising demand for agricultural equipment and strong grey market performance make this IPO appealing to investors.

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Conclusion

Indo Farm Equipment’s IPO has achieved phenomenal success on its opening day. With strong investor participation and impressive grey market premiums, the IPO is expected to list at a significant premium. Considering the company’s expansion plans and solid market position, it presents a promising investment opportunity for both short-term gains and long-term growth.