ideaForge Technology expected to deliver stellar listing pop at debut; check latest grey market premium

ideaForge Technology is all set to make its Dalal Street debut on Friday, July 7 and if one goes by the signals from grey market, the company could to deliver a stellar listing pop on its maiden trading session. The premium in the unofficial markets continues to remain solid despite the recent correction.

Last heard, ideaForge Technology was commanding a premium of Rs 510-520 per share in the grey markets, which is around 75-80 per cent higher from its issue price at Rs 672 apiece. However, the company commanded a grey market premium of Rs 575 at its peak.

According to the market analysts. Investors are highly confident in the company’s business model and its fundamentals, leading to strong premium in the grey markets. They are also swearing by the pedigree of existing shareholders and strong subscription status, signaling the demand for the company.

The company is engaged solely in the drone manufacturing business, which enables the company to focus on its core business operations, said Mahesh M Ojha, AVP - Research and Business Development at Hensex Securities. "The company promoter has a strong background leading to spectacular achievements, which is another advantage."

The Rs 567-crore IPO of ideaForge Technology, which was sold in the range of Rs 638-672 had received a bumper response from the investors during the four-day bidding process between June 26-30 fetching an overall subscribed 106.06 times. It became the first IPO after 2021 to get bids for more than 100 times.

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.

Considering the overwhelming response from all types of investors, we are expecting a strong 70% plus listing gain backed by first-mover advantage and a healthy market mood. Despite expensive ask valuation, ideaForge attracted stronger response across investor categories mainly due to its market leadership, said Prashanth Tapse, Research Analyst at Mehta Equities.
 
"We believe IdeaForge IPO offer was a great opportunity for investors to take part in one of the first pioneer and pre-eminent market leader in the Indian Unmanned Aircraft Systems (UAS) drone market and first-mover advantage driving the growth through a self-propagating flywheel," he added. "We recommend allotted investors to book profits on the listing day."
 
Incorporated in 2007, ideaForge Technology is engaged in the business of manufacturing unmanned aircraft systems for mapping, security and surveillance. Mumbai-based ideaForge has been ranked seventh globally in the dual-use category (civil and defense) drone manufacturers.

The IPO was very well received by investors, with the issue being subscribed to more than 106 times. This suggests that there is strong demand for the stock. Secondly, the IPO size is relatively small, which could also contribute to a high listing price, said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.

"Undoubtedly, it was a great opportunity for investors to apply for this IPO, but now we will recommend investors book profit on listing and exit their position, as after such a high listing, shares will be overvalued, and secondly, there is some business-related risk as well," she said.


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