Indo Farm Equipment Limited, through its initial public offer, is aiming to raise Rs 260.15 crore from the primary markets. Indo Farm Equipment IPO is set to go live on Dec. 31.

The public issue has garnered strong interest in the unlisted market even before opening for subscription. The grey market premium on Indo Farm Equipment IPO stood at Rs 80 apiece at 8:02 a.m. on Dec. 30, according to InvestorGain. This implies a listing gain of 37.21% on the upper end of the price band if the current trends are sustained.

As per the latest GMP, shares of Indo Farm Equipment are likely to list at Rs 295 apiece on the exchanges. The GMP trends, however, may change when the public issue goes live. 

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Indo Farm Equipment IPO: Price Band and Offer Size

Investors may place their bids for the Indo Farm Equipment IPO from Dec. 31 to Jan. 2. Share allotment in the issue is likely to be done on Friday, Jan. 3. 

Shares of the company are proposed to be listed on the BSE and NSE on Tuesday, Jan. 7.

Indo Farm Equipment IPO price band has been set at Rs 204 to Rs 215 apiece. Retail investors may bid in the IPO for at least 69 shares in a single lot, taking the minimum investment value in the category to Rs 14,835 for a single application.

The mainboard IPO consists of a fresh issue of 86 lakh shares worth Rs 184.9 crore and an offer for sale of 35 lakh shares totalling Rs 75.25 crore. 

Mas Services Ltd. is the registrar for the offer. The lone book-running lead manager of the IPO is Aryaman Financial Services Ltd.

Use Of Proceeds

In its red herring prospectus, Indo Farm Equipment said that it would use the proceeds from its IPO to expand its pick and carry crane manufacturing capability by setting up a dedicated unit for it. The company will use the funds raised from the IPO to settle its debts and invest in its NBFC subsidiary, Barota Finance Ltd. The rest of the proceeds will be used for general corporate purposes.

About Indo Farm Equipment Ltd.

Indo Farm Equipment Ltd., established in 1994, manufactures tractors, pick and carry cranes, as well as other harvesting equipment. The company, under the brand name Indo Farm and Indo Power, exports its products to Nepal, Syria, Sudan, Bangladesh, Myanmar and other countries. 

The company makes tractors range 16 HP to 110 HP and pick and carry cranes range 9 to 30 tonnes.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.

. Read more on IPOs by NDTV Profit.As per the latest GMP, shares of Indo Farm Equipment are likely to list at Rs 295 apiece on the exchanges.  Read MoreIPOs 

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