- CraneManufacturing, FinancialGrowth, IndoFarmEquipmentIPO, NBFCExpansion, TractorManufacturing
- 12:21 pm
Indo Farm Equipment IPO introduction
Leading manufacturer of tractors, pick and carry cranes and harvesting equipment, Indo Farm Equipment Limited, has disclosed its Initial Public Offering (IPO). IPO is an issue of 0.86 crore shares aggregating up to Rs. 184.90 crore for fresh issue and offer for sale of 0.35 crore shares aggregating up to Rs. 75.25 crore. IPO price band set at ₹204-₹215 per share; IPO to open for subscription from December 31, 2024 and ends January 2, 2025.
Table of Contents
Key Objectives of the IPO:
- Expansion of Crane Manufacturing Capacity: Setting up a unit to increase production capacity by 3,600 units each year.
- Debt Reduction: Used to repay or prepay some borrowings and to improve financial health.
- Strengthening Subsidiary: Infusion of capital in Barota Finance Ltd., a company’s NBFC subsidiary.
- General Corporate Purposes: Helps the business as a whole.
Key IPO Details
| Details | Information |
|---|
The Competitive Strengths of Indo Farm Equipment
- Fully Integrated Manufacturing Setup: Foundries, machine shops and assembly lines in a large facility in Baddi, Himachal Pradesh.
- Wide Product Range: It caters to the markets with a tractor (16 to 110 HP) and cranes (9 to 30 tons).
- Global Reach: Countries such as Nepal, Syria, Sudan are exported Products to them.
- Experienced Management: Deep industry knowledge, track record of success and Leadership.
- In-House NBFC: Having flexible financing solutions, Barota Finance Ltd. supports customers.
Financial Performance
| Metric | 30 Jun 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets (₹ Cr) | 644.27 | 647.95 | 622.84 | 619.83 |
| Revenue (₹ Cr) | 75.54 | 375.95 | 371.82 | 352.52 |
| Profit After Tax (₹ Cr) | 2.45 | 15.60 | 15.37 | 13.72 |
| Net Worth (₹ Cr) | 342.25 | 317.06 | 290.37 | 274.80 |
Financial Ratios:
- Return on Equity (ROE): 5.13%
- Return on Capital Employed (ROCE): 8.96%
- Debt-to-Equity Ratio: 0.01
- PAT Margin: 4.16%
- Price-to-Book Value: 2.55
Investment Insights: Should You Subscribe?
Strengths:
- Stable Financial Growth: Over the years, revenue and profits have always grown consistently.
- Low Debt Levels: A sound financial situation is described by a debt to equity ratio of 0.01.
- Expansion Opportunities: Long term growth gives out signs of intention to increase the crane production and the NBFC capabilities.
Risks:
- High Valuation: Going forward, at the present P/E ratio of 105.25x this is significantly higher than the sector average.
- Modest Returns: Despite that, ROE and ROCE still lag peers, suggesting wasted efficiency.
- Competitive Industry: It competes with existing global and domestic players.
- Verdict: Indo Farm Equipment IPO is good for investors with a long term horizon and are willing to wait for high returns.
Timeline for Indo Farm Equipment IPO
| Event | Date |
|---|---|
| IPO Opens | December 31, 2024 |
| IPO Closes | January 2, 2025 |
| Basis of Allotment | January 3, 2025 |
| Refunds Initiated | January 6, 2025 |
| Shares Credited to Demat | January 6, 2025 |
| Listing Date | January 7, 2025 |
| Category | Lot Size | Shares | Investment (₹) |
|---|---|---|---|
| Retail Min | 1 Lot | 69 | 14,835 |
| Retail Max | 13 Lots | 897 | 1,92,855 |
| S-HNI Min | 14 Lots | 966 | 2,07,690 |
| S-HNI Max | 67 Lots | 4,623 | 9,93,945 |
| B-HNI Min | 68 Lots | 4,692 | 10,08,780 |
Conclusion
Indo Farm Equipment IPO offers an opportunity to invest in a well utilized manufacture, has a global reach and growth plans. With its high valuation and just reasonable returns it has its risks, but with its low debt and expansion strategies it could be a decent long term investment. Decide wisely when you have evaluated your monetary objectives and danger perspective.
FAQ
What is the main goal of doing Indo Farm Equipment IPO?
A majority of the IPO funds will be used to increase the production of cranes, pay down debt and invest in their NBFC subsidiary.
What’s it like to do business with Indo Farm Equipment?
The company had proved to be a consistently profitable company with stable profits, and it had also grown its revenues steadily, and had low debt. But it’s worth more, and so it’s better for long term investors.
How do I know my IPO allotment status?
The allotment status of investors can be checked on the website of the registrar, Mas Services Limited or through BSE and NSE portals.
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