Shares of ideaForge Technologies made a bumper debut on Dalal Street today as the company got listed at Rs 1,305.10, a premium of 94% against its issue price of Rs 672 apiece on BSE. The stock was listed at a premium of 93% at Rs 1305.10 on NSE
A day before its listing, shares of ideaForge Technology were commanding a grey market premium of Rs 510-520 per share, which was around 75-80% higher from its issue price at Rs 672 apiece. However, the company delivered a better-than-expected listing, almost doubling investors' money
ideaForge shares' listing price matched analysts' expectations. They were expecting a listing premium in the range of 50-75%, citing the robust subscription to the initial public offering, first-mover advantage, healthy defence industry outlook and strong products portfolio with 50% market share in the domestic drone industry
"While there is no doubt that this was a great opportunity for investors, and it has delivered some surprising returns, we would recommend that investors should book profits and exit their positions. This is because after listing the stock is already trading at a significant premium to its issue price. Additionally, there are some business-related risks associated with the company, so it is better to lock in these gains now rather than take the risk of carrying them forward however, aggressive investors can still hold it with stop loss at Rs 1,170," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd
"A fantastic listing as expected in ideaForge. Considering the overwhelming response from all types of investors followed by first-mover advantage, hence post listing the valuation would be stretched and difficult to sustain and recommend allotted investors to book profits on the listing day while risky fancy investors can hold for medium to long term to play on drone demand," said Prashanth Tapse, Research Analyst and Sr VP Research, Mehta Equities Ltd
"ideaForge has opened gates of opportunity to invest in a drone manufacturing company and it shall surely remain the centre of attraction. The IPO performed astounding with a listing gain of almost 100%, we believe investors can stay invested if they have a long term investment prospects for more than 12 to 18 months. The industry exhibits good growth in the near future as the drone industry is one of the most fascinating and booming industries," said Mahesh M Ojha, AVP - Research and Business Development at Hensex Securities
The Rs 567-crore IPO of ideaForge Technology, which was sold in the range of Rs 638-672, had received an enthusiastic response from the investors, 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) of ideaForge IPO 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
ideaForge was founded in 2007 by IIT Bombay alumni Ankit Mehta, Rahul Singh, Vipul Joshi, and Ashish Bhat. The unmanned aerial vehicle (UAV) firm, now one of the largest drone-makers in India, had beginnings in IIT-Bombay’s innovation cell. The company made its mark as the first in India to develop and manufacture vertical take-off and landing (VTOL) drones
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
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