Ideaforge IPO soars: First to achieve 100 times subscription since 2022

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Ideaforge IPO soars: First to achieve 100 times subscription since 2022

Ideaforge Technology, a prominent player in the drone manufacturing industry, has made history by becoming the first initial public offering (IPO) to garner subscriptions exceeding 100 times since 2022. Industry experts credit this remarkable achievement to the overwhelming response from a diverse range of investors.

The company’s strong market position in the drone-making sector has undoubtedly provided it with a first-mover advantage, leading to heightened investor interest and consequently, elevated valuations.

During the period of June 26-30, Ideaforge’s IPO witnessed an overwhelming response, with subscription rates surpassing 106 times. The bids received at the higher end of the price band, which ranged between Rs 638 and Rs 672 per share, amounted to an impressive value of over Rs 33,000 crore.

Among the investor categories, qualified institutional investors (QIIs) were at the forefront, oversubscribing their reserved portion by a staggering 125.81 times. Retail investors and high net worth individuals (HNIs) also displayed significant interest, with subscription rates exceeding 85 times and 80 times, respectively.

Ideaforge aimed to raise a total of Rs 567 crore through its IPO, out of which Rs 254.88 crore was already secured via an anchor book on June 23, a day prior to the IPO’s opening. The remaining Rs 312 crore was made available for subscription during the week ending June 30.

Experts anticipate that the company’s unique growth story in the drone industry will continue to command premium valuations. The IPO’s smaller issue size and potential scarcity premium are also expected to contribute to favorable listing gains.

Comparing the subscription trends of recent years, 2022 did not witness any IPOs surpassing the 100-times subscription mark. However, in 2021, a notable total of 17 companies successfully concluded their public offerings with subscription rates exceeding 100 times. Throughout 2021, the market experienced the launch of 65 IPOs, amounting to a cumulative value of over Rs 1.31 lakh crore.

Last year, Latent View Analytics and Paras Defence & Space Technologies secured record-breaking subscription rates, with their IPOs surpassing 300 times. Additionally, IPOs by Tega Industries and MTAR Technologies recorded subscriptions of over 200 times, while Tatva Chintan Pharma Chem, Nazara Technologies, Easy Trip Planners, and CE Info Systems witnessed buying that exceeded 150-180 times their respective issue sizes.

About Ideaforge:

IdeaForge Technology is a leading company in the drone manufacturing industry. They are experts in developing and supplying drones for a wide range of purposes, including surveillance, mapping, and surveying. The company’s clients include prestigious organizations like the armed forces and central armed police forces, among others.

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