Indo Farm Equipment was listed at Rs 256 on the National Stock Exchange, a premium of 19% to the issue price. On the BSE, the stock was listed at Rs 258.40, a premium of 20%.
In the grey market, the stock fetched a premium of more than 35% to its issue price ahead of listing. It indicated that the stock might list around Rs 291. The grey market is an unofficial place to trade shares illegally.
The IPO was subscribed to 227.67 times. The retail portion was booked almost 102 times, while the NIIs dominated the bidding with 501.75 times subscriptions. The QIBs booked the IPO 242.4 times.
Indo Farm Equipment review
The company has a fully integrated manufacturing plant with 40-60% of products being made in-house. Its strong R&D product development capabilities of designing new developments, strong entry barriers with attractive industry dynamics, and strong promoter pedigree augur for multifold growth in the coming years, said Reliance Securities in an IPO note. “Hence, we recommend a ‘Subscribe’ (rating) to the issue.”
Indo Farm Equipment IPO details
The IPO opened for bidding on December 31 and ended on January 02. It raised Rs 260 crore through a fresh issue and an offer for sale. The allotment of shares was finalised on January 3. Its price band was fixed at Rs 204 to Rs 215 per equity share.
Lead manager and registrar
Aryaman Financial Services was the sole book-running lead manager of the IPO, while Mas Services was the registrar for the issue.
About Indo Farm Equipment
Indo Farm Equipment is engaged in manufacturing tractors, pick & carry cranes, and other harvesting equipment. The company operates two brands: Indo Farm and Indo Power. The company manufactures tractors ranging from 16 HP to 110 HP and pick and carry cranes ranging from 9 to 30 tons. It has an annual capacity of producing 12000 tractors and 1,280 pick and carry cranes.
Conclusion
The Indo Farm Equipment IPO saw an overwhelming response in all the categories. Analysts recommended subscribing to the issue looking at its strong R&D and in-house solid manufacturing base.
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