Forthcoming IPOs: ideaForge And Cyient DLM To Make Their Debut On Dalaal Street

The primary market will witness a busy week as two prominent two new companies, ideaForge and Cyient DLM will be making their stock market debut. Both companies aim to raise Rs 832 crore by through their respective IPOs.

These new IPOs will help the primary market to regain its mojo as a bustling week is awaited.

Before securities can be traded on bourses, they must first be sold by the issuer and purchased by investors on the primary market. Companies issue new securities on the primary market that have not been traded on an exchange before. The primary market will witness a busy week as two new companies, ideaForge and Cyient DLM will be making their stock market debut. Both companies aim to raise Rs 832 crore through their respective IPOs.

These new IPOs will help the primary market to regain its mojo as a bustling week is awaited.

Before securities can be traded on bourses, they must first be sold by the issuer and purchased by investors on the primary market. Companies issue new securities on the primary market that have not been traded on an exchange before.

The primary market is back in full swing, with traction seen in mainboard initial public offering as well as the small and medium enterprises (SME) IPOs segments.

Here's everything you need to know about the upcoming IPOs

1) ideaForge:

The IPO for India's largest drone manufacturer, ideaForge Technology Ltd, will open for subscription on June 26 and will be open to the public until June 29. The IPO price band has been set at Rs 638-672 per share.

ideaForge expects to raise close to Rs 570 crore through its offering, of which Rs 240 crore will come from a brand-new equity issuance.

The investors’ portion for qualified institutional bidders (QIBs) is 75 per cent while for Non-institutional investors (NII) and Retail investors, it is 15 and 10 per cent respectively.

The company also raised Rs 60 crore in pre-IPO funding from 360 One, Think Investments, Tata AIG, and Motilal Oswal. IdeaForge is aiming for a post-IPO implied market cap of up to Rs 2,800 crore through its IPO.

ideaForge Technology Ltd. was incorporated in 2007. With a market share of roughly 50 per cent in FY22, it is the innovator and market leader in the Indian unmanned aircraft systems (UAS) market.

As of the fiscal year 2023, the company had the largest operational deployment of domestic UAVs throughout India, with an ideaForge-produced drone taking off once every five minutes on average for surveillance and mapping.

The product portfolio of the company consists of embedded solutions, sub-systems, and software. Their ability to create, design, and deliver customer-centric offerings as well as their vertically integrated operations have all contributed to their growth over the years.

Over the past three FY 2020 - 2022, ideaForge's revenue from operations has increased at a CAGR of 237.48 per cent, with a return on capital employed of 49.63 per cent in FY 2022.

2) Cyient DLM

Cyient DLM Ltd, a subsidiary of the information technology (IT) company Cyient, will launch its initial public offering (IPO) on June 27. The IPO will be open for four days before closing on June 30. According to CNBCTV 18 reports, the company's shares are fetching a premium of Rs 110 in the unlisted market ahead of the subscription.

Cyient stated in a BSE filing on June 20 that the Draft Red Herring Prospectus (DRHP) was approved by the Telangana Registrar of Companies on June 20.

The public offer is a completely new issue of equity shares worth up to Rs 592 crore, down from Rs 740 crore previously. Because this is a new issue with no offer for sale (OFS), the company can use the entire IPO proceeds. Cyient DLM has completed a pre-IPO placement of 40.75 lakh equity shares, which has been reduced from Rs 140 crore to Rs 108 crore.

The company will reserve 75 per cent of the net offer for qualified institutional bidders, while non-institutional bidders will receive 15 per cent of the net offer. The remaining 10 per cent of shares would be distributed to retail investors.

Cyient DLM, incorporated in 1993, is one of the leading integrated Electronic Manufacturing Services and solutions providers, with strong capabilities across the value chain and the entire product life cycle. It is a qualified supplier to global OEMs in the aerospace and defense, medical technology, and industrial sectors, with over two decades of experience in developing high-mix, low-to-medium volume highly complex systems.