ideaForge Technology IPO to stay open for subscription on Wednesday as stock exchanges reschedule Bakri Id holiday

The Rs 567 crore-initial public offering (IPO) by ideaForge Technology will stay open for subscription on Wednesday against Thursday earlier, as stock exchanges announced normal trading session for June 28 after the rescheduling of Bakri Id holiday to June 29. Earlier, Wednesday was marked as market holiday, as per stock exchange calendars. 

On issue closure, the date is yet to be determined by the company.

ideaForge Technology has seen a strong response to its IPO, with the issue getting subscribed 8.68 times so far on the second day of the bidding process. The company is being offered in the price band of Rs 638-672 apiece. The IPO received bids for 4,04,71,794 shares so far on Day 2 against the issue size of 46,48,870 shares.

By 2.20 pm, the quota reserved for retail individual investors was subscribed 27.91 times, followed by quota for employees at 18.11 times. The non institutional investors quota was subscribed 13.48 times so far.

Last heard, the IPO was commanding a grey market premium (GMP) of Rs 535 or 80  per cent in the grey market.

Read more: ideaForge Technology IPO: Infosys to make 6x gains in drone maker on listing. Here's how
 

ideaForge Technology is a drone manufacturer with diversified product portfolio. It commanded a market share of 50 per cent as of FY22. It has 41 patent applications, with 20 filed internationally and 21 filed in India, as on June 30. The company ranked seventh globally in the dual-use category (civil/ defence) drone manufacturers, as per Drone Industry Insights report, Dec 2022.

Brokerages largely suggested a subscribe to the issue for the long-term and also suggested potential listing gains. 

"We like ideaForge Technology, given its complex/wide product portfolio, presence in niche space, strong client relationship and high entry barriers. The issue is valued at 5 times P/BV (peers average: 8 times) on a post issue basis, which is fairly valued. We believe IFL could benefit from government impetus on the defence space as well as rising enterprise demand. Hence we recommend Subscribe. Further given the current buoyant market and high interest for defence stocks, the issue could see listing gains as well," Motilal Oswal Securities said in a note. 

Anand Rathi said the company reaps an advantage of being a pure play in drone manufacturing division over its peers. The company is fairly valued at the current valuation. "Thus, we recommend a “subscribe- long term” rating to the IPO considering its future growth prospects," it said.

Also read: NSE, BSE reschedule Bakri Id holiday to Thursday, June 29; F&O expiry on Wednesday

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