Indo Farm Equipment IPO: Day 3 Subscription Update and Latest GMP
The Indo Farm Equipment Initial Public Offering (IPO) is witnessing an overwhelming response from investors as it enters the final day of the bidding process. As of the morning of January 2, 2025, the issue has been subscribed 78.81 times, with investors bidding for a massive 66.75 crore equity shares against the 84.70 lakh shares available for subscription.
Here’s a detailed look at the subscription status, market response, and the latest updates on this highly anticipated IPO.
Subscription Status on Day 3
The Indo Farm Equipment IPO opened on December 31, 2024, and is set to close today, January 2, 2025. The IPO is being offered in the price band of ₹204-215 per share, with a minimum subscription of 69 shares. Investors have been showing strong interest across all categories, and here’s how the subscriptions stand:
- Non-Institutional Investors (NIIs): Subscribed a remarkable 212.89 times.
- Qualified Institutional Buyers (QIBs): Subscribed 12.08 times.
- Retail Investors: Subscribed 59.48 times.
This strong demand for the IPO indicates that investors are keen to get a piece of Indo Farm Equipment’s promising future.
Grey Market Premium (GMP)
The grey market premium (GMP) for Indo Farm Equipment’s shares has seen a significant rise, despite the prevailing market volatility. The shares are currently trading at a premium of ₹90 in the unofficial market, which suggests a 42% potential listing gain for investors. However, it’s important to note that grey market premiums are speculative and can change quickly.
IPO Details and Offer Size
The Indo Farm Equipment IPO is a combination of a fresh equity issue of up to ₹185 crore and an offer for sale (OFS) of 35 lakh shares, totaling ₹260 crore. The company is offering shares at a price range of ₹204-215 each.
Out of the funds raised, approximately ₹50 crore will be used to repay borrowings, ₹45 crore will be invested in its subsidiary Barota Finance to enhance its capital base, and the remaining funds will be used for general corporate purposes.
Company Background
Indo Farm Equipment, established in 1994, is a fully integrated manufacturer of tractors, pick-and-carry cranes, and other farm equipment. The company’s products are exported to various countries, expanding its reach in the global market. For the fiscal year 2024, Indo Farm Equipment posted a revenue of ₹375 crore with a profit after tax of ₹15.5 crore.
IPO Timeline
- Anchor Book: The company raised ₹78.04 crore from 11 institutional investors ahead of the IPO launch.
- Pre-IPO Placement: 19 lakh shares were placed at ₹185 per share, reducing the size of the fresh issue from 1.05 crore to 86 lakh shares.
- IPO Allotment Date: Expected on January 3, 2025.
- Listing Date: Tentatively set for January 7, 2025, on both the BSE and NSE.
Conclusion
The Indo Farm Equipment IPO is turning out to be a massive success, with significant demand across all investor categories. The strong grey market premium adds to the positive outlook for the company’s stock post-listing. As the IPO closes today, all eyes will be on the allotment results, with listing scheduled for January 7, 2025.
Investors are advised to monitor the allotment and listing closely, and consider seeking professional investment advice before making any decisions.
Reference from:- https://www.cnbctv18.com/market/indo-farm-equipment-ipo-check-subscription-status-on-day-3-so-far-and-latest-gmp-19533232.htm