IdeaForge Technology IPO: Stock Lists at 93% Premium, Reaches ₹1,300 on NSE
Drone manufacturer IdeaForge Technology made a remarkable entry into the market with its IPO, debuting at a listing price of ₹1,300 per share. This represents a significant gain of approximately 93% for investors, considering that the company’s issue price at the upper band was ₹672.
While the IPO presented a great opportunity for investors and delivered surprising returns, financial experts advise caution. Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd., recommends that investors book profits and exit their positions. This suggestion arises from the fact that the stock is already trading at a substantial premium compared to its issue price. Moreover, the company faces certain business-related risks. Therefore, it is prudent to secure these gains now rather than carry forward potential uncertainties. However, aggressive investors may still choose to hold the stock, setting a stop loss at 1,170.
The IdeaForge IPO, which opened on Monday, June 26, and closed on Friday, June 30, garnered significant attention, with the final day seeing a subscription rate of 50.30 times. The offering received an overall positive response from retail investors, employees, non-institutional investors (NIIs), and qualified institutional buyers (QIBs). Notably, the retail investor portion was oversubscribed by 64.48 times, while the employee portion saw a subscription rate of 63.99 times.
Market participants widely anticipated the listing of IdeaForge on Dalal Street to be extraordinary, and it lived up to expectations. Speculations foresaw the share price to start at a four-figure value, and in a bullish scenario, the IPO might triple the invested amount for lucky allottees.
The exceptional response from investors and the modest size of the IPO indicate the high level of interest in IdeaForge. The company aimed to raise ₹567 crore through the IPO, consisting of a fresh issue of shares worth ₹240 crore and an offer for sale (OFS) of 48.69 lakh equity shares worth ₹327 crore by promoters and investors.
In a pre-IPO transaction, IdeaForge raised approximately ₹60 crore, resulting in a reduction in the new issuance size from ₹300 crore to ₹240 crore.
Promoters Ashish Bhat, Amarpreet Singh, and Nambirajan Seshadri participated in the OFS, alongside other selling shareholders such as A&E Investment LLC, Agarwal Trademart Pvt Ltd, Celesta Capital II Mauritius, and others.
The net proceeds from the IPO will be allocated towards debt settlement, fulfilling working capital requirements, investing in product development, and supporting general corporate objectives.
Leading the IdeaForge Technology IPO as book-running lead managers are JM Financial and IIFL Securities, with IPO registrar services provided by Link Intime India.
About IdeaForge Tech:
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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