Indo Farm Equipment's Strategic Move Ahead of IPO

In a significant development, Indo Farm Equipment has successfully raised over Rs 78 crore from anchor investors, marking a pivotal moment before its IPO launch. This move underscores the company's robust market position and investor confidence.

Investor Confidence and IPO Details

The anchor investors include prominent names such as Negen Undiscovered Value Fund and Niveshaay Hedgehogs, among others. The company has allocated 36.30 lakh shares to 11 entities at Rs 215 per equity share, totaling Rs 78.04 crore. The public subscription period is set from December 31 to January 2, with a price band of Rs 204-215 per share.

Utilization of IPO Proceeds

The Rs 260-crore IPO is structured with a fresh issue of 86 lakh equity shares and an OFS of 35 lakh equity shares by promoter Ranbir Singh Khadwalia. The proceeds are earmarked for establishing a new manufacturing unit for pick & carry cranes, debt repayment, and bolstering the capital requirements of subsidiary Barota Finance.

Market Position and Future Prospects

Specializing in manufacturing tractors, pick & carry cranes, and agricultural equipment, Indo Farm Equipment is poised for growth. The issue allocation is strategically divided with 50% for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. Aryaman Financial Services is the sole book-running lead manager, with shares to be listed on BSE and NSE.