Indo Farm Equipment Ltd has announced its price band for the upcoming Initial Public Offering (IPO) at ₹204-₹215 per share. The IPO is scheduled to open on December 31, with the anchor book opening a day earlier on December 30. The public issue will close on January 2. Post-issue events include the basis of allotment on January 3, refunds and share credits on January 6, and stock listing on January 7.
The IPO includes a fresh issue of up to 86 lakh shares and an offer for sale (OFS) of up to 35 lakh shares. At the upper price band, the fresh issue is valued at ₹184.90 crore, and the OFS at ₹753 crore, making the total market capitalization of the company approximately ₹1,000 crore.
Use of IPO Proceeds
The fresh issue funds would be deployed towards establishing a manufacturing unit for Pick & Carry Cranes, entailing land acquisition, land development, construction of factory buildings, and purchase of machinery and equipment. The cost of the estimated project is ₹71.13 crore.
Part of the proceeds would go towards debt repayment; the company had Rs 270.54 crore of outstanding debt at the end of June. A part would be invested in Barota Finance, the NBFC arm of Indo Farm Equipment, for expanding its capital base to meet growth plans.
Indo Farm Equipment Ltd was incorporated in 1994 as a leading manufacturer of tractors and Pick & Carry Cranes. Other farm equipment manufactured by the firm include Harvester Combines and Rotavators; however, these have only a small share in the total revenue earned by the firm. The manufacturing facilities are located at Baddi, Himachal Pradesh, and are spread over 127,840 square meters. These facilities consist of a foundry unit, a machine shop, and assembly lines for tractors and cranes.
Thus, as on 30 September 2024, installed capacity was of 12000 tractors along with a yearly 1, 280 cranes’ manufacture; production by this entity range from tractors from 16 HP through to 110 HP while making cranes that had capabilities from 9 to 30 tones.
For the fiscal ending FY24, Indo Farm Equipment reported revenues of ₹375.23 crore up from ₹370.76 crore in FY23. Net profit increased to ₹15.60 crore against ₹15.37 crore a year ago.
While tractor sales had decreased from 3,772 units in FY23 to 3,168 units in FY24, crane sales rocketed to 941 units against 681 units in the same corresponding period of last year. The company sold 471 tractors and 195 cranes as of June 2024.
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Source: Moneycontrol
News Desk
