Indo Farm Equipment to Raise Funds Through Maiden IPO

Chandigarh - Indo Farm Equipment Ltd., a tractor manufacturing company, is aiming to raise between $30,029,856 through  Initial Public Offering (IPO). The company reported operating revenue of $43,314,187 in FY24. Indo Farm manufactures a variety of agricultural equipment, including harvester combines, rotavators, and spare parts, under the Indo Farm and Indo Power brands.

Over the past 20 years, Indo Farm has invested nearly $23,100,320 in manufacturing facility in Baddi, Himachal Pradesh. The facility currently has an installed capacity of 12,000 tractors (ranging from 16hp to 100hp) and 1,280 cranes.

Mr. Anshul Khadwalia, Joint Managing Director of Indo Farm, said, "The company significant investments have been in maintaining full backward integration over its manufacturing processes in-house, including foundry, gear shop, machining, transmission, engine, fabrication, and hydraulics shop. The company plans to allocate Rs 45 crore to its in-house non-banking financial company, Barota Finance, to enhance lending to farmers purchasing tractors."

Post-IPO, Indo Farm aims to double its dealership network from 170 dealerships and target a turnover of over $57,750,300 in FY25-26, up from $43,314,187 in FY23-24. The IPO will include a fresh issue of up to 8.6 million equity shares and an offer for sale of up to 3.5 million shares. Investors can bid for a minimum of 69 shares, with additional multiples of 69 available.

Indo Farm's management is optimistic that, with the fund infusion, annual sales could increase to 6,500 units, potentially reaching 10,000 units by FY2026-27, as financing efforts through NBFCs gain momentum. As a regional player, Indo Farm competes with major companies like Mahindra, Escorts Kubota, John Deere, and TAFE in the tractor market.

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