Indo Farm listed @ Rs. 256

January 7, 2025 admin Leave a reply Post Comment

Indo Farm Equipment IPO GMP, Details, Guidance, Subscription Status, allotment @ Chanakyanipothi.com
A legacy of 31 Years.
India`s Oldest Investment & IPO website.
Most Trusted by Investors across India.

Table of Contents

• GMP
• Reviews
• Subscription
• Allotment

What is the business of Indo Farm Equipment?

Incorporated in 1994, Indo Farm Equipment Limited is a more than two decade old fully integrated manufacturer of world class Tractors, Pick & Carry Cranes and other farm equipment such as Harvester Combines, Rotavators and other related spares & components. Its products are sold under its own brand names.
Its products are being exported to various countries. Its total sales for last three financial years include 90% domestic sales and 10% export sales. Its ISO 9001:2015 certified manufacturing facilities are spread across 127,840 sq. mtrs. of Industrial lands at Baddi, Himachal Pradesh which includes a captive foundry unit and dedicated machine shop, fabrication and assembling units for Tractors, pick & Carry Cranes and other equipments.

The facilities are equipped with induction furnaces, pneumatic molding machines, automatic molding line, sand plant, fully equipped Metallurgy and Sand Testing Laboratory, Machining Center, Gear Shop, Press Shop, Fabrication Shop, Paint Shop, Assembly unit, Quality Room & Utility room.
Its integrated operations enable it to manufacture some of the critical machine components in-house which reduces its dependence on third parties, streamlines its production process and improves its operational efficiencies. In addition, it also enables it to maintain control over the entire manufacturing process and also provide better delivery timelines to its customers at a more competitive cost.

As on August 31, 2023, its production facilities have a capacity to manufacture 12,000 Tractors p.a. & 720 Pick & Carry Cranes p.a. It is currently manufacturing Tractors ranging from 16 HP to 110HP and Pick & Carry Cranes ranging from 9 tons to 30 tons. It has recently acquired industrial land near its manufacturing facility wherein it intends to set up additional dedicated Pick & Carry Crane manufacturing unit and increase its additional capacity by 3,600 units p.a. Its products have a proven standing and market in various sectors such as Agriculture, Infrastructure, Construction, Heavy Engineering and Industrial Projects.

For more information, click www.indofarm.in

Indo Farm Equipment IPO GMP, Particulars & Guidance

Indo Farm Equipment IPO Guidance by Paresh Gordhandas, CA & Research Analyst.
Indo Farm Equipment Limited, traditionally known as a tractor OEM, is now positioning itself to capitalize on the growth potential in the Pick & Carry cranes segment. As of September 30, 2024, the company boasts an annual manufacturing capacity of 12,000 tractors and 1,280 cranes. Looking ahead, a new facility set to begin operations before Q2 FY26 will significantly boost crane production capacity to 4,880 units per year. This expansion is projected to contribute an additional Rs. 760 crore to annual turnover.

The company’s strategic investment in Barota Finance, funded by IPO proceeds, is expected to strengthen its dealer network, thereby driving higher tractor sales. However, challenges persist, including the need for better working capital management and margin improvements due to elevated inventory levels, which could result in potential losses during liquidation. Additionally, Indo Farm faces cyclical fluctuations in tractor sales and stiff competition from well-established players in the market.

On the valuation front, the company’s current P/E ratio of 51.82x may appear slightly higher than industry peers. However, this can be justified by the company’s unique fully integrated business model, which includes both backward and forward integration, unlike its competitors with more fragmented product portfolios.

The Premium to Offer Price ratio is attractive, and the relatively small size of the IPO is another positive factor. Of the total Rs. 260.15 crore, only Rs. 91.05 crore is allocated to the retail portion, while Rs. 39.02 crore is for HNI investors. With 61,377 applications, the retail portion is expected to be subscribed one time.

Additionally, Aryaman Financial Services, the merchant banker handling this IPO, brings an impressive track record of positive listings, making this offering even more appealing. After a long hiatus, this respected institution is back with this IPO.

Given these factors, we assign a “Subscribe” rating to this IPO.

Quicklinks

• Staffavailable.com
• BigGaddi.com
• Sahifund.com
• Magajmari.com
• AnalysisLibrary.com

Indo Farm Equipment IPO GMP

Indo Farm Equipment IPO GMP today details

Indo Farm Equipment IPO GMP today, Details, Guidance, Subscription Status, allotment