Listing of Indo Farm Equipment: Shares enter the listing at a premium of over 20%.
After attracting many investors during the IPO process, shares of Indo Farm Equipment were listed on the bourse on Tuesday (January 7). The stock on the BSE listed at a price of Rs 258.4, indicating a premium of 20.19 percent. On the NSE it opened at Rs 256 against the issued price of Rs 215 per share, a premium of over 19 per cent.
For a total of Rs 260.15 crore, the issue was subscribed 229.68 times. In the retail section, the issue received 104.92 times of bids, while the portion of Qualified Institutional Buyers (QIB) was registered 242.4 times. The non-institutional investor (NII) category saw exceptional demand, with a subscription rate of 503.83 times, according to NSE data.
The opinion of experts and analysts on the listing
Zee Business Managing Editor Anil Singhvi on the list of Indo Farm Equipment said that the issue has received a huge response and today small and low priced IPOs are getting a strong response. And in such cases, it is difficult to predict the price.
Still, he expected the stock to be listed in the range of Rs 250-260 per share, which is about a 21 percent premium over the issue price.
In the shares he suggested, one can keep stoplos of Rs 235 and keep following.
Prashanth Tapse, Senior VP (Research), Mehta Equities, meanwhile, said that despite the offer being on the expensive side, Indo Farm Equipment has received an overwhelming response.
“We believe that the high demand was due to the main reason that the company is using the IPO funds to strengthen its dealer funding which will eventually lead to higher tractor sales in the future. On the other hand, the company is in a position to expand its ability to pick and carry cranes to meet the growing needs followed by a strong business model of back-to-back which helps the company to enjoy a higher EBITDA margin compared to its peers and captures the bright growth prospects in the agriculture and cranes segment because of huge infrastructure spending from the Government and the private sector.”
Considering the renewed market sentiment and high demand for subscriptions, we expect the company to list with strong listing benefits of more than 40 percent of its issue value, he added.
