Indo Farm Equipment IPO Day 2: Grey Market Premium Soars 44%; Check Details Here

Indo Farm Equipment IPO: The IPO, a book-built issue valued at Rs 260.15 crore, received bids for 14,99,60,184 shares, compared to the 84,70,000 shares on offer

The shares are anticipated to be listed on the BSE and NSE on Tuesday, January 7, 2025

Source : ABPLIVE AI

The initial public offering (IPO) of Indo Farm Equipment, which opened for subscription on December 31, 2024, has garnered an overwhelming response from investors, getting oversubscribed by 17.70 times on its first day.

The IPO, a book-built issue valued at Rs 260.15 crore, received bids for 14,99,60,184 shares, compared to the 84,70,000 shares on offer. Non-Institutional Investors (NIIs) led the way, oversubscribing their reserved portion by 28.56 times. Retail Individual Investors (RIIs) followed closely, oversubscribing their segment by 18.54 times, while the quota reserved for Qualified Institutional Buyers (QIBs) was oversubscribed by 8.10 times.

Indo Farm Equipment IPO, priced in the range of Rs 204-215 per share with a lot size of 69 shares, will close for subscription on Thursday, January 2, 2025.

Indo Farm Equipment IPO Grey Market Premium (GMP) Today

On the second day of the subscription period, the unlisted shares of Indo Farm Equipment were trading at a strong premium in the grey market. Sources monitoring grey market activities reported that the shares were quoted at Rs 310 each, compared to the upper end of the IPO price at Rs 215. This translates to a grey market premium (GMP) of Rs 95, or 44.19 per cent, as of today, according to a Business Standard report.

Indo Farm Equipment IPO Review

Indo Farm Equipment's IPO has received positive reviews from various brokerages, including Canara Bank Securities and Anand Rathi, further bolstering investor confidence in the offering.

Indo Farm Equipment IPO Allotment and Listing Schedule

After the subscription window closes, the allotment of Indo Farm Equipment IPO shares is expected to be finalized on Friday, January 3, 2025. The successful applicants will see the shares credited to their demat accounts by Monday, January 6, 2025.

The shares are anticipated to be listed on the BSE and NSE on Tuesday, January 7, 2025.

Indo Farm Equipment IPO Objective

According to the company’s Red Herring Prospectus (RHP), it said, “The Promoter Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale after deducting their proportion of Offer-related expenses and relevant taxes thereon. Our Company will not receive any proceeds from the Offer for Sale by the Promoter Selling Shareholders.”

The proceeds from the fresh issue will be used for setting up a new dedicated unit to expand its Pick & Carry Cranes manufacturing capacity. Additionally, some of the funds will be allocated to repay or prepay certain borrowings, either in full or in part. Indo Farm Equipment also plans to invest in its NBFC subsidiary, Barota Finance, to bolster its capital base and meet future capital requirements. The remaining funds will be utilized for general corporate purposes.