Indo Farm Equipment
Book Building issueMainboardNSE₹260 Cr issue
+20.19%
Listing gain over issue price
Issue size
₹260 Cr
1 lot at cut-off
₹14,835
Lot size
69shares
Open
31 Dec 2024
Close
02 Jan 2025
Allotment
03 Jan 2025
Listing
07 Jan 2025
Listing performance
Issue price
₹215
Listed at
₹258.40
Listing-day close
₹273.69
Latest price
₹114.97
Close on 23 Oct 2026
Listing gain
+20.19%
Return since issue
-46.53%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 31 Dec 2024 – 02 Jan 2025
- Listing date
- 07 Jan 2025
- Face value
- ₹10 per share
- Issue price
- ₹215 per share
- Lot size
- 69 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹260 Cr
- Market cap at offer price
- ₹1,033 Cr
- Promoter holding
- 93.45% → 69.44% pre-issue → post-issue
- ISIN
- INE622H01018
- Registrar
- MAS Services Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- SCO 859, NAC Manimajra Kalka Road, Chandigarh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 36,30,000 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 69 shares per lot, in multiples, at ₹215
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 69 | ₹14,835 |
| Retail (max) | 13 | 897 | ₹1,92,855 |
| S-HNI (min) | 14 | 966 | ₹2,07,690 |
| S-HNI (max) | 67 | 4,623 | ₹9,93,945 |
| B-HNI (min) | 68 | 4,692 | ₹10,08,780 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
36,30,000
Anchor portion
₹78.05 Cr
at ₹215 per share
Valuation and performance
Valuation at offer price
₹215 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.95 | 2.04 |
| P/E (×) | 54.43 | 105.39 |
| Price to book (×) | 2.55 | — |
| Market cap | — | ₹1,033 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 4.92%
- ROCE
- 8.96%
- Debt / equity
- 0.85
- PAT margin
- 4.16%
- NAV per share
- ₹84.43
- Price to book
- 2.55
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Indo Farm Equipment
Incorporated in 1994 and converted to a public limited company in 1999, Indo Farm Equipment Limited is more than two decades old. As of Fiscal 2024, the company derives 52.16% of revenue from tractors, 47.77% from Pick & Carry cranes, and 0.07% from other farm equipment. The company operates a wholly-owned NBFC subsidiary, Barota Finance Limited, registered with the RBI, which focuses on retail financing of tractors. The company manufactures through fully integrated operations including in-house foundry and critical components manufacturing.
Company Analysis
from RHPIndo Farm Equipment Limited is a fully integrated manufacturer of tractors and Pick & Carry cranes with ancillary manufacturing of farm equipment, operating primarily in India.
Incorporated in 1994 and converted to a public limited company in 1999, Indo Farm Equipment Limited is more than two decades old. As of Fiscal 2024, the company derives 52.16% of revenue from tractors, 47.77% from Pick & Carry cranes, and 0.07% from other farm equipment. The company operates a wholly-owned NBFC subsidiary, Barota Finance Limited, registered with the RBI, which focuses on retail financing of tractors. The company manufactures through fully integrated operations including in-house foundry and critical components manufacturing.
Agricultural Equipment ManufacturingTractor ManufacturingMobile Crane ManufacturingFarm Equipment ManufacturingNon-Banking Financial Services (through subsidiary)
Objects of the Issue
- Setting up new Dedicated Unit for Expansion of Pick & Carry Cranes Manufacturing Capacity ₹700.74 million p.22
- Repayment or pre-payment, in full or part, of certain borrowings availed by our Company ₹500.00 million p.22
- Further Investment in our NBFC Subsidiary (Barota Finance Ltd.) for financing the augmentation of its capital base to meet its future capital requirements ₹450.00 million p.22
- General Corporate Purposes ₹29.93 million p.22
- Setting up new Dedicated Unit for Expansion of our Pick & Carry Cranes Manufacturing Capacity ₹700.74 million p.92
- Repayment or pre-payment, in full or part, of certain borrowings availed by our Company ₹500.00 million p.92
- Further Investment in our NBFC Subsidiary (Barota Finance Ltd.) for financing the augmentation of its capital base to meet its future capital requirements ₹450.00 million p.92
- General Corporate Purposes ₹29.93 million p.92
- Setting up a new Pick & Carry Crane manufacturing facility with additional capacity of 3,600 cranes per annum, including acquisition of land, construction of facility, and installation of fabrication, sheet metal and assembly line equipment ₹950.00 million p.89
- Repayment of ₹350 million to Canara Bank and ₹150 million to Punjab National Bank from Net Proceeds towards partial repayment or pre-payment of certain borrowings availed by the Company ₹500.00 million p.102
- Further investment in NBFC subsidiary Barota Finance Limited for financing augmentation of its capital base to meet future capital requirements and support retail financing for customer purchases ₹450.00 million p.102
- General corporate purposes including strategic initiatives, partnerships, joint ventures, acquisitions, brand promotion activities, and renovation of existing facilities ₹29.93 million p.104
- Funding capital expenditure requirements for Proposed Manufacturing Unit p.405
Issue Structure
- Total Issue
- ₹2,601.50 million (12,100,000 equity shares at ₹215 per share)
- Fresh Issue
- ₹1,849.00 million (8,600,000 equity shares at ₹215 per share)
- Offer for Sale
- ₹752.50 million (3,500,000 equity shares at ₹215 per share by Ranbir Singh Khadwalia)
- Price Band
- ₹204 (Floor Price) to ₹215 (Cap Price) per equity share
- Lot Size
- 69 Equity Shares and in multiples of 69 Equity Shares thereafter
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue through the manufacture and sale of tractors and Pick & Carry cranes to dealers, with approximately 99% of tractor revenue coming from dealers. The company also operates an asset financing business through its NBFC subsidiary for retail financing of tractors. Revenue for FY 2024 was ₹3,752.32 million with PAT of ₹155.95 million.
Business Segments
Manufacturing and sale of tractors for agricultural purposes
Manufacturing and sale of mobile cranes for infrastructure applications
Retail financing of tractors through wholly-owned NBFC subsidiary
Manufactures and sells tractors under the INDO FARM brand for agricultural markets, domestically and internationally.
Manufactures and sells pick-and-carry cranes under the INDO POWER brand for construction and industrial applications.
Non-banking financial company providing retail financing for tractor purchases to support the company's sales.
Manufactures tractors ranging from 16 HP to 110 HP in 2 WD and 4 WD variants with features including efficient engines, high pulling power, power steering, and dual clutch. Also developing backhoe loaders, air-conditioned tractors, and electric tractors.
Manufactures hydraulic mobile cranes from 9 tons to 30 tons capacity in 2WD and 4WD variants used for material handling, construction, and infrastructure projects. Products include INDO POWER FN Series, FNX Series, and IP Series.
Manufactures harvester combines (multi-purpose farming machines for threshing, reaping and cleaning), rotavators (tractor implements for soil preparation), and other foundry components and scrap.
Wholly-owned RBI-registered Non-Banking Financial Company (Non-Deposit Taking) financing tractors sold by the company and pre-owned vehicles of other brands. Provides flexible repayment options and customized loan terms to customers.
Manufacturing of tractors ranging from 16 to 110 horsepower, including product lines 2-series, 3-series and various other models sold through 159 dealers across India and international markets.
Manufacturing of pick & carry cranes with capacities ranging from 15 to 30 tonnes, sold through 16 dealers, direct sales channels, and government/institutional tenders under the INDO POWER brand.
Non-Deposit Taking NBFC providing financing for tractors (new and used), cranes, and pre-owned vehicles. As of June 30, 2024, the subsidiary had a loan book of ₹1,271.55 million and 5,900 active customers.
Manufacture and sale of tractors, spare parts, rotavators, and scrap sales generated during manufacturing process
Manufacture and sale of cranes
Non-banking finance activities through subsidiary Barota Finance Limited, providing hypothecation loans to customers
Sale of combine, casting division and scrap sales
Manufacturing and sale of tractors and related parts
Manufacturing and sale of pick & carry cranes
Asset financing business with focus on retail financing of tractors through wholly owned subsidiary
Casting and foundry operations
Assembly of tractors
Assembly of cranes
SWOT Analysis
Strengths
- • Established manufacturer with 30-year history in tractors and cranes(p.21)
- • Strong growth in crane segment with high capacity utilization(p.33)
- • Backward integration with in-house foundry and components manufacturing(p.39)
- • Strong asset quality in NBFC subsidiary with low NPA levels(p.38)
- • Diversified product portfolio across two major segments(p.21)
- • Long-standing relationships with dealers and customers(p.48)
- • ISO 9001:2015 certified manufacturing units(p.49)
- • High capacity utilization in crane manufacturing(p.94)
- • Subsidiary NBFC provides integrated financing support(p.51)
- • Fully integrated manufacturing with in-house component production(p.160)
- • Established brand with two decades of consistent profitability(p.160)
- • In-house NBFC subsidiary for customer financing(p.161)
- • Strong EBITDA margins demonstrating operational efficiency(p.160)
- • Wide product range across tractors and cranes (16-110 HP tractors, 9-30 ton cranes)(p.160)
- • Strong capacity utilization in crane segment (99% in FY2024)(p.162)
- • Presence in 34+ countries indicating product acceptance internationally(p.161)
- • Experienced management with three decades of industry expertise(p.161)
- • In-house integrated manufacturing capability with specialized divisions(p.173)
- • State-of-the-art machining and production equipment(p.174)
- • Established dealer network across India(p.178)
- • Wholly owned NBFC subsidiary for customer financing(p.182)
- • Strong R&D with indigenous technology development(p.177)
- • Established brand recognition with multiple product lines(p.184)
- • Established manufacturing operations with significant asset base(p.237)
- • Diversified product portfolio across tractors, cranes, and NBFC operations(p.310)
- • Stable revenue generation with consistent performance(p.254)
- • Strong equity base and capital structure(p.237)
Weaknesses
- • Low capacity utilization in tractor division at 32% average(p.33)
- • High inventory holding periods indicating working capital inefficiency(p.39)
- • Significant contingent liabilities of ₹200.34 million not yet provided for(p.46)
- • History of delay in provident fund payments(p.45)
- • Exposure to litigation including NCLT insolvency proceedings(p.45)
- • Pending environmental compliance approvals(p.31)
- • Geographic concentration of all manufacturing in Himachal Pradesh(p.36)
- • Heavy dependence on financing availability for tractor sales(p.35)
- • High trade receivable levels relative to income(p.48)
- • Dependency on manual and contractual labor for operations(p.48)
- • Significant outstanding debt with restrictive covenants(p.49)
- • Promoter personal guarantees on company borrowings(p.51)
- • No dividend payments in last three fiscal years(p.57)
- • Unregistered trademarks in foreign export markets(p.53)
- • High debt-to-equity ratio of 0.72 indicating financial leverage(p.162)
- • Deteriorating debt servicing ratio due to rising finance costs(p.101)
- • Very high working capital cycle of 270.73 days relative to industry median of 90.50 days(p.150)
- • Low market share of only 0.30% in tractor segment versus 31.16% for Mahindra(p.139)
- • Lower net margin of 3.50% compared to peers Escorts (11.17%) and Sonalika (17.51%)(p.149)
- • High employee cost to sales ratio of 10% versus industry median of 8%(p.149)
- • Long-term debt to cash accruals ratio of 1.95 versus industry median of 0.5(p.149)
- • Pending government approvals for proposed expansion project(p.101)
- • High raw material dependency with cost volatility exposure(p.176)
- • Increasing NPA levels in NBFC subsidiary(p.183)
- • High employee attrition rates(p.184)
- • Declining tractor capacity utilization(p.178)
- • Concentration risk with top dealers(p.178)
- • High leverage with significant borrowings relative to equity(p.252)
- • Concentration of trade receivables with aging issues(p.250)
- • Subsidiary NBFC shows performance volatility(p.246)
- • High working capital requirements with significant inventory holdings(p.250)
- • Promoter-dependent organization with concentrated shareholding(p.291)
- • High contingent liabilities with claims not acknowledged as debts(p.322)
- • Low debt service coverage ratio indicating liquidity pressure(p.325)
- • Deteriorating profitability in current quarter(p.360)
- • Multiple pending litigation matters creating legal exposure(p.379)
- • Significant tax disputes outstanding(p.381)
Opportunities
- • Expansion of crane manufacturing capacity with strong demand signals(p.21)
- • Growth in global agriculture equipment market(p.21)
- • Expansion of global tractor market(p.21)
- • Increasing crane capacity utilization and order fulfillment(p.33)
- • Further investment in NBFC subsidiary for expanded financing support(p.22)
- • Expansion of Pick & Carry Crane manufacturing capacity(p.94)
- • Strong demand trajectory for cranes with high capacity utilization(p.94)
- • Capital infusion to strengthen subsidiary NBFC(p.93)
- • Market presence in agricultural equipment & crane sectors with growth tailwinds(p.52)
- • Significant crane market growth of 5-6% CAGR driven by infrastructure investment(p.162)
- • Planned expansion of crane capacity by 3,600 units per annum(p.163)
- • Expansion of dealer network from 175 to over 500 dealers in three years(p.163)
- • Low penetration of farm mechanization in India at 40-45% versus 95% in USA(p.132)
- • Strong tractor market growth at 6.70% CAGR projected to 2029(p.134)
- • Indian agri equipment market expected to grow at 8.5% CAGR to 2029(p.129)
- • Export market opportunity with tractors developed for Africa, Latin America and Middle East(p.170)
- • Growing acceptance by leading private banks (HDFC, YES Bank, Kotak) for retail financing(p.161)
- • Dealer network expansion plan(p.179)
- • Market expansion and brand positioning(p.181)
- • Capacity expansion for cranes division(p.185)
- • Multi-channel sales strategy for cranes(p.181)
- • Government tender and institutional business opportunity(p.179)
- • Product range expansion across horsepower segments(p.181)
- • Expansion of manufacturing capacity for new products(p.265)
- • Geographic revenue diversification with export growth potential(p.254)
Threats
- • Monsoon dependency affects farmer discretionary income and tractor demand(p.30)
- • Regional concentration of sales in top 5 states vulnerable to local disruptions(p.40)
- • Intense price competition and dealer pricing pressure(p.43)
- • Raw material price volatility and inflation pressures(p.42)
- • Seismic and natural disaster risk in Himachal Pradesh(p.36)
- • Regulatory and environmental compliance risks(p.32)
- • Public Interest Litigation regarding waste disposal affecting operations(p.32)
- • Dependence on retail financing from banks and NBFCs subject to regulatory changes(p.35)
- • Supply chain disruption risks from transportation dependency(p.44)
- • Tractor industry cyclicality tied to monsoon and farmer sentiment(p.52)
- • Significant competition from large established players with stronger networks(p.51)
- • Regulatory changes in emission standards requiring product adaptation(p.51)
- • Risk of labor strikes and wage inflation(p.48)
- • Potential failure to meet EPCG export obligations attracting customs duties(p.48)
- • Uncertain interpretation and implementation of evolving Indian labor regulations(p.58)
- • Global economic instability and Indian market volatility(p.59)
- • Risk of unanticipated delays in government approvals for new manufacturing facility(p.101)
- • Intense competition from consolidated market leaders with 75-80% market share in tractors(p.139)
- • High industry concentration with top 5 tractor players holding 80% market share(p.149)
- • Monsoon dependency affecting tractor demand and asset quality(p.154)
- • Risk of supply chain disruptions for high-grade steel and sophisticated parts(p.152)
- • Commodity price and exchange rate volatility affecting input costs(p.117)
- • Subdued farmer sentiment due to erratic monsoon patterns(p.153)
- • High leverage reducing financial flexibility in an economic downturn(p.101)
- • Electricity supply dependency with backup needs(p.177)
- • Complex regulatory environment across multiple domains(p.187)
- • Motor vehicle emission standards compliance requirements(p.197)
- • Environmental and pollution control compliance obligations(p.196)
- • Labour law complexity and compliance costs(p.197)
- • NBFC regulatory requirements and NPA management challenges(p.190)
- • Exposure to commodity price volatility in raw materials(p.255)
- • Dependence on bank financing with variable interest rates(p.281)
- • Credit risk from NBFC hypothecation loan portfolio(p.246)
- • Foreign exchange volatility affecting export operations(p.280)
- • Exposure to monsoon and agriculture sector dependency(p.342)
- • Intensity of competition from better-resourced competitors(p.343)
- • Raw material price volatility and supply risk(p.342)
- • Foreign exchange fluctuation risk(p.343)
- • Government regulation and policy changes affecting demand and costs(p.344)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ranbir Singh Khadwalia | Promoter and Promoter Selling Shareholder | 51.52% | 35.02% |
| Sunita Saini | Promoter | 27.00% | 22.16% |
| Ranbir Singh Khadwalia | Promoter | 51.52% | 35.02% |
| Sunita Saini | Promoter | 27.00% | 22.16% |
| M/s Futuristic Mining and Construction Solutions LLP | Promoter Group | 11.08% | 9.10% |
| Anshul Khadwalia | Promoter Group | 2.53% | 2.08% |
| Ranbir Singh Khadwalia | Promoter | — | — |
| Ranbir Singh Khadwalia | Promoter | 51.52% | — |
| Sunita Saini | Promoter | 26.99% | — |
| R.S. Khadwalia | Promoter | 54.13% | 51.52% |
| Sunita Saini | Promoter | 28.36% | 27.00% |
| M/s Futuristic Mining Constructions Solutions LLP | Promoter | 11.64% | 11.08% |
| Ranbir Singh Khadwalia | Promoter Selling Shareholder | — | — |
Leadership
Ranbir Singh Khadwalia · Chairman
Varun Sharma · Chief Financial Officer
Navpreet Kaur · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Indo Farm Equipment IPO FAQs
What is the lot size of Indo Farm Equipment IPO?
The minimum lot size of Indo Farm Equipment IPO is 69 shares. One lot costs ₹14,835 at the cut-off price.
When does Indo Farm Equipment IPO open and close?
Indo Farm Equipment IPO opened for subscription on 31 Dec 2024 and closed on 02 Jan 2025.
What is the listing date of Indo Farm Equipment IPO?
Indo Farm Equipment IPO listed on 07 Jan 2025.