Indo Farm Equipment IPO listing tomorrow: Here’s what GMP, subscription status, expert signal ahead of listing

Indo Farm Equipment IPO listing date has been scheduled for tomorrow (Tuesday, January 7). Indo Farm Equipment IPO allotment was finalised on Friday, January 3. For those who have been allocated shares, the crediting of shares to demat accounts will occur today, Monday, January 6. The process of refunding those who have not yet received their shares will likewise be finished today.

Indo Farm Equipment launched its IPO for subscription from Tuesday, December 31 to Thursday, January 2. By the conclusion of the bidding period, the offering received an overwhelming response, particularly from non-institutional investors (NIIs) who subscribed 501.65 times, followed by qualified institutional buyers (QIBs) at 242.40 times. Retail investors showed a subscription rate of 101.64 times. Notably, on the third day of the IPO, the Indo Farm Equipment IPO subscription status stood at 227.57 times, as reported by the NSE.

The company reserved 50% of the shares in the public issue for qualified institutional buyers (QIB), 15% for non-institutional Institutional Investors (NII), and 35% of the offer is reserved for retail investors.

Indo Farm Equipment IPO price band was set in the range of ₹204 to ₹215 apiece of the face value of ₹10. Bids could be placed for multiples of 69 shares, or at least 69 shares.

Prashanth Tapse, Senior Vice President of Research and Research Analyst at Mehta Equities, noted that although the offer was slightly on the pricier side, Indo Farm Equipment garnered an exceptional response from investors, particularly in the Non-Institutional Investors (NII) segment, which bid over 500 times the allotted amount. Meanwhile, the retail investor portion experienced an astonishing 104 times subscription, leading to an overall oversubscription of 227.67 times, making it the second most subscribed IPO among mainboard issues introduced in 2024.

Given the renewed market sentiment and robust demand for subscriptions, we anticipate that the company will debut with significant gains exceeding approximately 40% of its issue price. We feel that the anticipated listing gain is warranted, as investors are optimistic about healthy growth following the expansion of pick and carry crane capacities and the enhancement of its dealer network.

Indo Farm Equipment IPO GMP today

Let’s check what does Indo Farm Equipment IPO GMP today signal ahead of listing.

Indo Farm Equipment IPO grey market premium is +90. This indicates Indo Farm Equipment share price were trading at a premium of ₹90 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Indo Farm Equipment share price was indicated at ₹305 apiece, which is 41.86% higher than the IPO price of ₹215.

Following the grey market activities over the past 27 sessions, today’s IPO GMP is showing an upward trend and anticipates a robust listing. The minimum GMP recorded is ₹0, whereas the maximum GMP is ₹99, according to experts from investorgain.com.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Indo Farm Equipment IPO details

The IPO of the Chandigarh-based firm includes a new issue of as much as 8.6 million equity shares along with an offer for sale (OFS) of up to 3.5 million equity shares from Ranbir Singh Khadwalia, the Promoter Selling Shareholder.

The company intends to use the net proceeds from the newly issued shares to establish a dedicated facility designed to enhance the production capacity of Pick & Carry Cranes ( ₹70 crore), to repay or settle a portion or all of specific loans acquired by the company ( ₹50 crore), to increase investment in its NBFC subsidiary (Barota Finance) to bolster its capital base for upcoming requirements ( ₹45 crore), and to allocate the remaining funds for general corporate purposes.

Aryaman Financial Services Ltd serves as the book running lead manager for the Indo Farm Equipment IPO, whereas Mas Services Ltd is the registrar handling the issue.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.