Ahead of IPO, Indo Farm Equipment collects Rs 78 cr from anchor investors

Indo Farm Equipment on Monday said it has mobilised a little over Rs 78 crore from anchor investors, a day before its initial share sale opening for public subscription.

Negen Undiscovered Value Fund, Niveshaay Hedgehogs, Rajasthan Global Securities, Subham Capital, India Equity Fund I, Saint Capital Fund and Vikasa India EIF I Fund - Share Class P, among others, were anchor investors, according to a circular uploaded on BSE's website.

According to a circular, Indo Farm Equipment has allotted 36.30 lakh shares to 11 entities at Rs 215 per equity share, which is also the upper end of the price band.

This aggregates the transaction size to Rs 78.04 crore.

The issue, with a price band of Rs 204-215 per share for its initial share sale, will open for public subscription on December 31 and conclude on January 2.

The Rs 260-crore initial public offering (IPO) comprises a fresh issue of 86 lakh equity shares and an offer for sale (OFS) of 35 lakh equity shares by promoter Ranbir Singh Khadwalia.

Proceeds from the fresh issue will be used to set up a new dedicated unit for expansion of the company's pick & carry cranes manufacturing capacity, payment of debt, investment in the company's NBFC subsidiary Barota Finance for financing the augmentation of its capital base to meet its future capital requirements.

Indo Farm Equipment manufactures tractors, pick & carry cranes and other farm equipment.

At the upper end of the price band, the IPO size has been pegged at Rs 260 crore, placing the company's market capitalisation at over Rs 1,000 crore.

Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Aryaman Financial Services is the sole book-running lead manager for the issue. The equity shares will be listed on the BSE and NSE.