Indo Farm Equipment’s shares reached ₹293.20 on January 8, 2025, marking a 36 per cent increase from its IPO price of ₹215, on its second day of trading on the stock exchanges. The stock opened at ₹276.44 and recorded a low of ₹275.00 during the session.
The shares are currently trading at ₹279, up by ₹5.31 or 1.94 per cent from their previous close at ₹273.69 on the NSE.
The agricultural equipment manufacturer had a strong market debut on January 3, listing at ₹256 on NSE and ₹258.40 on BSE, representing a premium of approximately 19-20 per cent over its issue price. The company’s ₹260.15 crore IPO, which closed on January 2, saw overwhelming investor interest with a subscription rate of 227.67 times.
The IPO comprised a fresh issue of ₹184.90 crore and an offer for sale worth ₹75.25 crore. The Chandigarh-based company plans to use the proceeds to expand its pick-and-carry crane manufacturing capacity and strengthen its NBFC subsidiary, Barota Finance Ltd.
Major brokerages including SBI Securities and Anand Rathi had recommended subscribing to the IPO for long-term investment, despite noting that valuations appeared fully priced at 65x PE ratio based on FY24 earnings. The company reported modest growth in FY24, with revenue and profit after tax increasing by 1 per cent compared to the previous fiscal year.
