Daijiworld Media Network - Mumbai
Mumbai, Jan 7: Indo Farm Equipment Limited made a decent debut on the stock market today, opening with a 19% premium over its Initial Public Offering (IPO) price. However, the performance did not meet the grey market premium (GMP) predictions or analysts' expectations.
On the National Stock Exchange (NSE), the company's shares were listed at Rs 256, reflecting a 19.07% gain from the issue price. Following the listing, the company's market capitalization reached Rs 1,230.12 cr. On the Bombay Stock Exchange (BSE), shares opened slightly higher at Rs 258.40, marking a 20.19% premium.
Despite these promising figures, the listing fell short of grey market predictions, which had forecast a 35% premium. The shares eventually settled at approximately 20% above the IPO price, providing a solid but not exceptional debut.
Impressive IPO subscription
The allotment of shares for Indo Farm Equipment was finalized on January 3, after an overwhelming response during the IPO's three-day subscription period, held from December 31, 2024, to January 2.
The IPO garnered one of the highest-ever subscription rates:
• Overall subscription: 227.67 times
• Retail investors: 101.79 times
• Qualified Institutional Buyers (QIB): 242.4 times
• Non-Institutional Investors (NII): 501.75 times
This response marked it as one of the most heavily subscribed IPOs in recent history.
Expert Opinion
Commenting on the listing, Prashanth Tapse, senior VP (research) at Mehta Equities Ltd., said:
"We recommend conservative allotted investors to consider booking profits above our expectations. However, long-term investors should HOLD despite potential short-term volatility and market risks. Non-allotted investors should look to accumulate shares during dips, as profit-booking attempts may bring down the price temporarily."
IPO details
The IPO price band for Indo Farm Equipment had been set between Rs 204 and Rs 215 per share. The shares' robust listing highlights investor confidence in the company's potential, even as market fluctuations and GMP predictions tempered expectations.
While the debut may not have matched grey market projections, experts believe that the company's long-term prospects remain promising, making it a stock to watch in the agricultural and industrial equipment sector.