The price range for Indo Farm Equipment's IPO is ₹204 to ₹215 per share. The company wants to raise ₹260.15 crore from the book-built issue at the upper end of the price range.
Indo Farm Equipment IPO: The tractor maker Indo Farm Equipment Ltd.'s IPO was significantly oversubscribed on the first day of bidding, indicating that demand for the offering is high. On January 1, the second day of the Indo Farm Equipment IPO's subscription period began. There are now just two days remaining for interested investors to submit applications for the Indo Farm Equipment IPO.The Indo Farm Equipment initial public offering (IPO) will close on January 2 after opening for subscriptions on December 31. Let's examine the Indo Farm Equipment IPO GMP, subscription status, review, and other important information as the second day of the bidding season has begun.
IPO GMP for Indo Farm Equipment
On the second day of the bidding, Indo Farm Equipment shares are fetching a high grey market premium (GMP). The stock market watchers say that the IPO GMP for Indo Farm Equipment is ₹96 per share today. This shows that shares of Indo Farm Equipment are trading on the grey market for ₹311 each, which is 45% more than the issue price of ₹215 a share.
Status of Indo Farm Equipment IPO Subscriptions: To date, 25.74 subscriptions have been made to the Indo Farm Equipment IPO. According to NSE data, the issue received bids for 21.79 crore equity shares up to 11:10 AM on January 1, the second day of the bidding process, compared to 84.70 lakh shares on the offer.
While the Non Institutional Investors (NII) section has been subscribed to 47.35 times thus far, the Retail Investors category has been booked 26.53 times. 8.13 reservations have been made for the Qualified Institutional Buyers (QIBs) section.
Do you want to apply for the IPO of Indo Farm Equipment?
Based on FY24 profits, the Indo Farm Equipment IPO is valued at a P/E ratio of 51.8x on the upper price band, which is comparatively high when compared to its competitors. However, BP Equities stated that it recommends a "Subscribe" rating for the issue due to the company's increasing sales, growth-oriented investment in its NBFC, and positive industry prospects.
The issue is requesting a market cap of ₹1,033.1 crore and an EV/EBITDA ratio of 17, which does not include the impact of interest expenses, on valuation parse at the maximum band of ₹215 per share. The company is requesting a fully priced PE of 65 times based on FY24 results.
Therefore, we think that Indo Farm, which has a long history of success, skilled promoters, and well-planned capacity development, debt payback, and financial arm strengthening, will continue to grow in the long run. Therefore, taking into account every factor, we advise that the matter be seen as Subscribe for the long run," Anand Rathi stated.
Details of the Indo Farm Equipment IPO
The Indo Farm Equipment initial public offering (IPO) will close on Thursday, January 2, after opening for subscriptions on Tuesday, December 31. The IPO listing date is January 7, and the IPO allocation is anticipated to be finalized on January 3.
The price range for Indo Farm Equipment's IPO is ₹204 to ₹215 per share. The company wants to raise ₹260.15 crore at the upper end of the price range through the book-built issue, which consists of an offer-for-sale of 35 lakh shares worth ₹75.25 crore and a fresh issue of 86 lakh equity shares for ₹184.90 crore.
Prior to the commencement of the IPO subscription period, the company received ₹78 crore from anchor investors. At the upper end of the pricing range, ₹215 per equity share, the corporation has distributed 36.30 lakh shares to 11 organizations.
Mas Services is the IPO registrar, while Aryaman Financial Services is the book running lead manager for the Indo Farm Equipment IPO.
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