Shares of ideaForge Technology listed on the stock exchanges at a premium on Friday. On the National Stock Exchange (NSE), the stock was listed at Rs 1,300 per share, 93.5 per cent higher than the issue price. On the BSE, the stock was listed at Rs 1,305.10 per share, reflecting a sharp premium of 94.21 per cent.
The Indian Unmanned Aircraft Systems (UAS) drone maker set the price band for the IdeaForge IPO at Rs 638 to Rs 672 per equity share to raise Rs 567.24 crore.
The ideaForge stock is trading on the exchanges with the symbol IDEAFORGE
Last week, the initial public offering of ideaForge received a whopping 106.05 times subscription. The portion booked for retail individual investors (RIIs) was subscribed 85.1 times, qualified institutional buyers (QIBs) by 125.81 times, and non-institutional investors (NIIs) by 80.5 times.
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Prior to listing, the stock commanded a grey market premium (GMP) of Rs 515 in the unlisted market.
Established in 2007, the Mumbai-based firm has the largest operational deployment of indifenous Unmanned Aircraft Vehicles (UAVs) across India. It has been backed by several marquee ventures and private equity investors, including Celesta Capital, Qualcomm Asia, and Infosys.
ideaForge’s customers include the armed forces, central armed police forces, state police departments, forest departments, disaster management forces, and civil customers.
"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," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd.
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"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 1170," she said.
ideaForge Technology reported 16 per cent year-on-year growth in revenue from operations to Rs 186 crore in the financial year 2023. The profit after tax stood at Rs 31.99 crore in the same quarter.
The proceeds from the public issue will be utilized for debt repayment, working capital requirements, product development, and general corporate purposes.
IIFL Securities and JM Financial were the book-running lead managers, and Link Inktime India acted as the registrar for the issue.
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