The Indo Farm Equipment Limited IPO is a public issue for ₹260.15 crores, combining a fresh issue of ₹184.90 crores and an offer for sale of ₹75.25 crores. The IPO will be listed on BSE and NSE and is open for subscription from December 31, 2024, to January 2, 2025. Here are the key details:

IPO Details:

• Price Band: ₹204 to ₹215 per share.
• Face Value: ₹10 per share.
• Lot Size: 69 shares (minimum investment of ₹14,835).
• Listing Date: January 7, 2025.
• Issue Type: Book-built issue.
• Post-IPO Promoter Holding: 69.44% (down from 93.45%).

Objectives:

1. Expand the manufacturing capacity for pick-and-carry cranes.
2. Repay or prepay certain borrowings.
3. Fund the NBFC subsidiary, Barota Finance Ltd., for capital augmentation.
4. General corporate purposes.

Financial Overview:

• Revenue (FY24): ₹375.95 crores (up 1.11% from FY23).
• PAT (FY24): ₹15.6 crores (up 1.5%).
• P/E ratio: Approximately 51.80x, higher than the industry average of 42.10x, indicating possible overvaluation​Shoonya Blog​Investor Gain​FinOwingS.

Strengths:

• Diverse product portfolio (tractors, cranes, and farm equipment).
• Exports to several countries, including Syria, Nepal, and Germany.
• Integrated manufacturing facilities at Baddi, Himachal Pradesh.

Risks:

• Over-dependence on external factors such as government subsidies, fuel prices, and agricultural credit availability.
• Strong competition from larger players.
• Vulnerability to raw material price volatility and regulatory changes​