Indo Farm Equipment IPO subscribed 229.31 times on Day 3; Check latest GMP, subscription status, other details | Stock Market News
Source: Live Mint
Tractor manufacturer Indo Farm Equipment’s initial public offering (IPO) received an overwhelming response on the final day of the public bidding. The public issue opened for public subscription on Tuesday, December 31, and closed on Thursday, January 2.
The IPO was subscribed 229.31 times on the final day as investors bid for 1,94,22,18,417 shares, compared to the 84,70,000 equity shares on offer. The company’s book-built public issue was a fresh issue of 86 lakh equity shares along with an offer-for-sale (OFS) component of 35 lakh equity shares.
Indo Farm Equipment Subscription
Of the three bidding segments, the Non-Institutional Investors (NIIs) subscribed to the IPO the most, coming in at 503.39 times compared to the shares available. The Qualified Institutional Buyers (QIBs) followed the NII lead, coming in at 242.40 times the shares on offer. The retail investor portion was subscribed 104.36 times on the final day, according to the data collected from BSE.
Indo Farm Equipment IPO raised ₹78 crore from its anchor investors like Negen Undiscovered Value Fund, Niveshaay Hedgehogs, Rajasthan Global Securities, Subham Capital, India Equity Fund I, Saint Capital Fund, etc., ahead of the public issue.
The public issue is expected to be listed on the stock market on Tuesday, January 7.
Indo Farm Equipment IPO latest GMP
As of January 2, the grey market premium (GMP) of Indo Farm Equipment stands at ₹96 per share. With the upper price band at ₹215, the shares are expected to be listed at ₹311, a premium of 44.65 per cent.
Grey market premium (GMP) is the investors’ willingness to pay more for a public issue. The GMP for the public issue jumped ₹6 to its current level of ₹96 per share after the final day of bidding, compared to its earlier level of ₹90 on January 1.
Indo Farm Equipment IPO Details
Indo Farm Equipment Limited manufactures and sells tractors, pick-and-carry cranes, and other agricultural equipment.
The company aims to use ₹50 crore of the net proceeds from the public issue to repay or prepay certain company borrowings, in part or in full. It also aims to use ₹70.07 crore to expand its pick-and-carry crane manufacturing capacity.
In addition, the company plans to invest ₹45 crore in its NBFC subsidiary, Barota Finance Ltd., to finance its capital base and meet the non-banking lenders’ future capital needs. The remaining amount raised from the stock markets will be used for general corporate purposes.
Aryaman Financial Services is the book-running manager of the public issue, while MAS Services is the registrar of the offer.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
