Indo Farm Equipment Limited IPO
Company Overview
Indo Farm Equipment Limited was incorporated in 1994 and has established itself as a prominent manufacturer of tractors, pick & carry cranes, and harvesting equipment. The company operates under two brands: Indo Farm and Indo Power.
Export Markets
Indo Farm Equipment Limited exports its products to several countries, including Nepal, Syria, Sudan, Bangladesh, and Myanmar. The company's products have gained acceptance in these markets due to their quality, reliability, and performance.
Product Range
Indo Farm Equipment Limited's product range includes:
a) Tractors: 16 HP to 110 HP
b) Pick & Carry Cranes: 9 to 30 tons
c) Harvesting equipment, including harvester combines and rotavators
Manufacturing Facility
The company's manufacturing facility is located in Baddi, Himachal Pradesh, spanning 127,840 sq. meters. The facility is equipped with a foundry, machine shop, and assembly units, with an annual production capacity of 12,000 tractors and 1,280 pick & carry cranes.
Expansion Plans
Indo Farm Equipment Limited has acquired additional industrial land to set up a new pick & carry crane manufacturing unit, increasing its production capacity by 3,600 units per annum. Objectives of the Issue
Setting up a new Dedicated Unit for the Expansion of their Pick & Carry Cranes Manufacturing Capacity
Repayment or pre-payment, in full or part, of certain borrowings availed by the Company
Further Investment in NBFC Subsidiary (Barota Finance Ltd.) for financing the augmentation of its capital base to meet its future capital requirements.
General Corporate Purposes
Strengths
In-house manufacturing: 330+ tractor & 190 crane components manufactured in-house.
R&D capabilities: Indigenous tractor & crane designs developed through in-house R&D.
Barota Finance: ₹127.15 crore loans disbursed to 5,900+ customers.
Global presence: Exporting to Africa, LATAM, Europe, and Asia.
Retail financing partnerships: Tied up with HDFC, Kotak, ICICI, and Axis for retail financing.
ISO-certified facility: Baddi facility equipped with foundry and assembly units, certified by ISO.
Risks
Revenue concentration: Heavy reliance on tractors and cranes for revenue.
Regulatory risks: Awaiting approvals for consent to operate and fire safety NOCs.
Competition and financing risks: Low tractor capacity due to competition and financing challenges.
Dependence on banks and NBFCs: Heavy reliance on banks, NBFC, and Barota Finance for financing.
Recovery and regulatory risks: Barota Finance is exposed to recovery and regulatory risks.
Geographical concentration risks: Operational risks due to geographical concentration in Himachal Pradesh.
Indo Farm Equipment IPO: Key Details
IPO Dates: 31 December 2024 to 2 January, 2025
Price Band : ₹204 to ₹215 per share
Lot Size: 69 shares
Total Issue size: ₹ 260.15 Crores
Retail Quota: 35%
GMP: 40% ( For Informational purposes only )
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