Indo Farm IPO: GMP falls ahead of debut; will the stock deliver healthy gains on share market listing?

Shares of Indo Farm Equipment are set to make their Dalal Street debut on Tuesday, January 07. Amid the rising sell-off in the broader markets, the company has lost some of its ground in the unofficial market. However, the company is headed for a strong stock market listing despite the recent correction in the grey market premium (GMP).

Ahead of their listing, shares of Indo Farm Equipment were commanding a grey market premium of Rs 78-80 apiece, suggesting a listing pop of about 36-37 per cent for the investors. However, the GMP had surged up to Rs 95-100 post the closure of the issue, signaling up to 46 per cent gains for the investors.

The IPO of Indo Farm Equipment ran for bidding between December 31, 2024 and January 02, 2025. It sold its shares in the price band of Rs 204-215 per share with a lot size of 69 shares. The company raised a total of Rs 260.15 crore from its IPO, which includes a fresh share sale of 86 lakh worth Rs 184.90 crore and an offer-for-sale (OFS) of up to 35 lakh equity shares.

The issue was overall subscribed a solid 229.68 times, fetching bids for close to Rs 42,000 crore with more than 54.16 lakh applications. The portion for qualified institutional bidders (QIBs) was booked 242.40 times, while the quota for non-institutional investors (NIIs) was subscribed a stellar 503.83 times. The allocations retail investors were subscribed 104.92 times.

Incorporated in 1994, Chandigarh-based Indo Farm Equipment is engaged in manufacturing tractors, pick & carry cranes, and other harvesting equipment. It operates two brands: Indo Farm and Indo Power. They export their products to countries like Nepal, Syria, Sudan, Bangladesh, Myanmar and more.

Brokerage firms were mostly positive on the issue and suggested subscribing to it. Aryaman Financial Services is the book running lead manager of the Indo Farm Equipment IPO, while MAS Services is the registrar for the issue. Shares of the company shall be listed on both NSE and BSE.