I would like to know feedback about a 5 years integrated BBA-MBA at IIM Indore. Is it considered equivalent to a normal IIM pass out?

The vision of the IPM program is good, and the execution was flawless. As a result, other IIMs are considering similar offerings. One of my friends is an alumnus of IIM Indore, so I think I can give some insight regarding the course. 

In this course, you will spend three years as an undergrad student, and the last two years with PGP students, attending the same classes and completing the same assignments.

Without going through CAT, this is the best you can hope for. In fact, when the seats-to-applicants ratio is considered, competition has now reached a comparable level.

This program is not equivalent to PGP. But, these students do receive the same exposure and opportunities including placement.

So, you should apply for the program, given the opportunity.