ideaForge Technology IPO allotment today; grey market premium takes a hit

ideaForge Technology is likely to finalize the basis of allotment of its shares on Wednesday, July 05, 2023. The initiam public offering of unmanned aircraft systems (UAS) received a super strong response from the investors during the four-day bidding. It became the first IPO after 2021 to get bids for more than 100 times. Incorporated in 2007, ideaForge Technology is engaged in the business of manufacturing unmanned aircraft systems for mapping, security and surveillance. These drones are capable of a wide range of mining area planning, and mapping applications. ideaForge UAVs help construction and real estate boost their operations. The Rs 567-crore IPO of ideaForge Technology had received a super strong response from the investors during   the four-day bidding process between June 26-30, thanks to its niche business model. The issue was overall subscribed 106.06 times. The company sold its shares in the fixed price range of Rs 638-672 per share. The quota reserved for qualified institutional bidders (QIBs) was subscribed a whopping 125.81 times, while the portion for non-institutional bidders (NIIs) was booked 80.58 times. The allocation of retail investors was subscribed 85.20 times, while the portion for employees fetched 96.65 times bids. Last heard, the listing bound player was commanding a premium of Rs 510-515 per share in the grey market, which was around Rs 530 a day ago. According to the sources tracking the grey market, the premium in the official market has eased as valuations turn more realistic. Mumbai-based ideaForge has been ranked seventh globally in the dual-use category (civil and defense) drone manufacturers as per the report published by Drone Industry Insights in December 2022, while it is the largest in the country. It is backed by marquee investors such as Infosys, Qualcomm, Celesta, Florintree, EXIM Bank and Indusage Technology Venture among others. Majority of the brokerage firms are positive on the issue citing the rising demand of drones, niche business model and positive outlook for the sector. However, a few have a word of caution for the issue citing its expensive valuations, lack of long-term contracts and high competition in the industry. Investors, who had bid for the issue, can check the allotment status on the Bombay Stock Exchange (BSE) website: 1) Visit https://www.bseindia.com/investors/appli_check.aspx 2) Under the issue type, click Equity 3) Under the issue name, select ideaForge Technology Limited in the dropbox 4) Write the application number 5) Add the PAN card ID 6) Click on 'I am not a Robot' and hit submit Investors can also check the allotment status on the online portal of Link Intime India Private Limited (https://linkintime.co.in/MIPO/Ipoallotment.html), the registrar to the issue. The registrar is a Sebi-registered entity, qualified to act as such and which electronically processes all applications and carries out the allotment process, as per the prospectus. The registrar is responsible for complying with the timelines for updating the electronic credit of shares to successful applicants, dispatching and uploading refunds, and attending to all investor-related queries after the issue is completed. 1) Go to the web portal of Link Intime India Private Limited 2) Select the IPO in dropbox whose name will be populated only if the allotment is finalized 3) You may be required to select either one of the three modes: Application number, Demat Account number, or PAN ID 4) In application type, select between ASBA and non-ASBA 5) Enter the details of the mode you selected in Step 2 6) For security purposes, fill the captcha accurately 7) Hit submit. Bidders who could not get allotment in the IPO may see the initialization of refunds on Thursday, June 06. Others, who would be allotted shares may see the credit of shares, in the Demat account by Friday, June 07. The listing of the IPO is likely on Monday, June 10.