First IPO to close in 2025 gets massive investor response
FinTech BizNews Service
Mumbai, 3 January, 2025: It was a good start to IPOs in the New Year with Indo Farm Equipment's IPO (the first to close in Calendar Year 2025) getting an overall subscription of 229.68 times on the final day of subscription on Thursday, as per BSE data. All three categories – QIB, HNI and Retail portions got a whopping response as QIB portion got subscribed 242.4 times, HNI-NII portion got subscribed 503.83 times and Retail Investors portion subscribed 104.92 times.
The IPO size of Rs. 260 crore garnered subscription response of approx. Rs. 41,800 crores
The Rs 260-crore initial share sale received bids for 1,94,53,89,519 shares against 84,70,000 shares on offer, according to BSE data.
The IPO comprises a fresh issue of 86 lakh equity shares and an Offer-for-Sale (OFS) of 35 lakh shares by promoter Ranbir Singh Khadwalia.
Indo Farm Equipment Limited currently manufactures Tractors ranging from 16 HP to 110 HP and pick & Carry Cranes ranging from 9 tons to 30 tons. Its production facility has a capacity to manufacture 12,000 Tractors per year & 1,280 Pick & Carry Cranes per year.
The company has recently acquired industrial land near its manufacturing facility to set up new Dedicated Unit for expansion of its Pick & Carry Cranes manufacturing capacity for additional capacity of 3,600 cranes per year for which it has earmarked Rs. 70 crores. The land has been allotted on a leasehold basis for a period of 95 years by the Himachal Pradesh State Industrial Development Corporation (HPSIDC) and is located at Baddi, District Solan, Himachal Pradesh.
Proceeds from the fresh issue will be used to set up a new dedicated unit for expansion of the company's pick & carry cranes manufacturing capacity, payment of debt, investment in the company's NBFC subsidiary Barota Finance for financing the augmentation of its capital base to meet its future capital requirements.
The company garnered a little over Rs 78 crore from anchor investors. The issue has a price band of Rs 204-215 per share. At the upper end of the price band, the IPO size has been pegged at Rs 260 crore, placing the company's market capitalisation at over Rs 1,000 crore.
Aryaman Financial Services is the sole book-running lead manager for the issue.
