Indo Farm Equipment Secures Rs 78 Crore from Anchor Investors Ahead of Upcoming IPO

Indo Farm Equipment has successfully raised over Rs 78 crore from anchor investors, just ahead of its public share sale. The company allocated 36.30 lakh shares to 11 entities at Rs 215 each, the top of its price range. This allocation includes investors like Negen Undiscovered Value Fund and Rajasthan Global Securities, as per a BSE circular.

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The initial public offering (IPO) is set to open for public subscription on December 31 and will close on January 2. The IPO, valued at Rs 260 crore, consists of a fresh issue of 86 lakh equity shares and an offer for sale of 35 lakh shares by promoter Ranbir Singh Khadwalia. The price band for the IPO is set between Rs 204 and Rs 215 per share.

IPO Details and Allocation

The funds from the fresh issue will be directed towards expanding the company's pick & carry cranes manufacturing capacity. Additionally, some proceeds will be used to pay off debt and invest in Barota Finance, Indo Farm's NBFC subsidiary, to strengthen its capital base. Indo Farm Equipment is known for producing tractors, cranes, and other agricultural machinery.

At the highest price point of Rs 215 per share, the IPO size is estimated at Rs 260 crore, giving the company a market capitalisation exceeding Rs 1,000 crore. The IPO reserves half of its size for qualified institutional buyers, while retail investors are allocated 35%, and non-institutional investors receive the remaining 15%.

Market Capitalisation and Listing

Aryaman Financial Services is acting as the sole book-running lead manager for this issue. Once completed, the equity shares will be listed on both the BSE and NSE. Indo Farm Equipment aims to utilise this opportunity to enhance its manufacturing capabilities and financial stability through strategic investments.

The company's strategic move to raise funds through this IPO highlights its commitment to growth and expansion in the agricultural equipment sector. With a strong focus on increasing production capacity and financial health, Indo Farm Equipment is positioning itself for future success in the market.