Bumper Listing: ideaForge debuts at a premium of 94% at Rs 1300

ideaForge, a prominent drone manufacturer, is listed with a premium of 94.21% at Rs 1305.10 per share on BSE. On the NSE, the stock debuted at Rs 1,300, indicating an impressive increase of 93.45% compared to its initial public offering price of Rs 672.

Currently, while writing this article the stock is trading at Rs 1305 on the BSE. Its intraday highs and lows are Rs 1344 and Rs 1257.80, respectively. The current market capitalisation of the company is Rs 54,35.31 Crore.

The company is a leading drone manufacturer in India and is one of the pioneers in the country’s unmanned aircraft systems industry. Established in 2007, is a company dedicated to the manufacturing of Unmanned Aircraft Systems. In the year 2022, they achieved an impressive market share of 50%.

Let’s recapitulate the subscription history of the company.

On the first day of bidding, it was subscribed to 3.69 times the offering size. Moreover, retail investors showed the highest level of interest, subscribing 12.48 times, followed by employees with a subscription rate of 8.47 times. Non-institutional investors subscribed 5.13 times, while Qualified Institutional buyers showed relatively lower interest at 0.01 times.

It had also received support and investments from prestigious ventures and private equity investors such as Qualcomm Asia, Infosys, and Celesta Capital.

On the final day of the IPO window June 30, 2023, the IPO witnessed an exceptional subscription rate of 106.06 times. The public issue received an overwhelming response, with the retail category being subscribed 85.20 times, the QIB category achieving a remarkable subscription rate of 125.81 times, and the NII category reaching a subscription rate of 80.58 times.

The company had already attracted Rs 182 crore from 14 anchor investors. The company has allocated 63.84 lakh equity shares at Rs 285 per share to anchor investors.

The price range for the IPO was set between Rs 638 and Rs 672, with a face value of Rs 10 per share and a lot size of 22 shares. The total size of the company’s IPO was Rs 567 Crore. The final share issue price of the company was fixed at Rs 672. It has given a return of 94.21% on the listing day itself.

Following are the financials of the company:

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Given the prevailing optimistic market sentiment, if the listing gains exceed 75%, the allotted investors may consider booking profits on the day of listing. However, investors with a higher risk appetite may hold the shares for the medium to long term could be beneficial, to play on drone demand.

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.