Indo Farm Equipment IPO: Driving Growth in Agricultural Innovation with ₹260 Crore Offering
Indo Farm Equipment IPO: Leveraging 30 Years of Expertise to Fund Future Expansion
BILKULONLINE
Ahmedabad, Dec 27: Indo Farm Equipment Ltd., a prominent player in the Auto – Tractors sector, has announced its initial public offering (IPO) worth ₹260 crores. The offering consists of a fresh issue of ₹184.90 crores and an offer for sale of ₹75.25 crores. The IPO will open for subscription on December 31, 2024, and close on January 2, 2025. Share allotment is scheduled for January 3, 2025, with the issue priced at ₹215 per share.
Aryaman Financial Services Limited has been appointed as the book-running lead manager, while Mas Services Limited will serve as the registrar. The IPO provides investors an opportunity to invest in a well-established name in the agricultural equipment sector, with strong expansion and market penetration plans.
Media Interaction Highlights:
Chairman and Managing Director Ranbir Singh Khadwalia, along with Director Anshul Khadwalia, CFO Varun Sharma, Deepak Biyani of Aryaman Financial Services Limited, and Survinder Singh Chadha of Barota Finance Limited, addressed the media in Ahmedabad on Friday. Chairman Ranbir Singh provided an in-depth briefing on the IPO and the company’s future growth strategies.
Industry Outlook:
The IPO comes at a time of robust growth in the agricultural equipment sector:
- The global tractor market is expected to grow from USD 84.80 billion in 2024 to USD 114.5 billion by 2029, registering a CAGR of 5.90%. Tractors dominate the agricultural machinery segment with an 86.9% market share, reflecting the increasing demand for mechanized farming equipment.
- The global agricultural equipment market is forecasted to expand from USD 180.81 billion in 2023 to USD 296.61 billion by 2030, growing at a CAGR of 7.3%. Factors such as contract farming and precision farming techniques are driving the adoption of advanced machinery.
Objectives of the IPO:
Proceeds from the IPO will be utilized for:
– Setting up a dedicated unit to enhance pick-and-carry crane production to meet rising market demand.
– Repayment or partial pre-payment of existing company borrowings.
– Investments in its subsidiary, Barota Finance Ltd.
– General corporate purposes.
Company Profile:
Established in 1994, Indo Farm Equipment Limited is a fully integrated manufacturer of tractors, pick-and-carry cranes, and various farm equipment, including harvester combines and rotavators. The company’s extensive product line is marketed both domestically and internationally, with 90% of sales coming from the Indian market and 10% from exports over the past three fiscal years.
The company’s manufacturing facilities, located in Baddi, Himachal Pradesh, span 1,27,840 square meters and hold ISO 9001:2015 certification. The facilities include state-of-the-art infrastructure, such as induction furnaces, pneumatic molding machines, automatic molding lines, a sand plant, metallurgy and sand testing laboratories, machining centers, gear shops, press shops, fabrication shops, paint shops, assembly units, and quality control rooms.
Indo Farm Equipment Ltd. has developed a robust distribution network with over 140 dealers across key states, including Punjab, Haryana, Uttar Pradesh, Maharashtra, Gujarat, and Rajasthan. This comprehensive ecosystem supports high-quality product delivery and financial support to customers.
The company’s rich legacy of over two decades, coupled with its ambitious growth plans, positions it as an attractive investment opportunity in the rapidly expanding agricultural equipment sector.
Disclaimer: Readers are advised to carefully study the IPO prospectus and consult their financial advisors before making any investment decisions.
Visit BILKULONLINE You Tube Channel – Kindly Subscribe & Like. IPO report video link below:
