ideaForge Technology has preponed its listing date at Dalal Street to Friday, 7 July 2023. Initially, the company was scheduled to be listed on the stock exchanges on Monday, 10 July 2023.
The initial public offering (IPO) of ideaForge Technology received a solid response from the investors during the four-day bidding process between 26-30 June, with the issue being subscribed more than 106.06 times. It became the first public issue since 2021 to get bids more than 100 times.
The portion booked for qualified institutional bidders (QIBs) was subscribed 125.81 times, and the quota for non-institutional bidders (NIIs) was subscribed 85.58 times. The quota reserved for retail investors was subscribed 85.20 times and the portion for employees received 96.65 times bids.
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ideaForge IPO GMP
According to ipowatch.in, ideaForge IPO grey market premium (GMP) is Rs 510 per share, which was around Rs 530 a day ago, which means the grey market is expecting that the listing price would be around Rs 1182 (672+510), which is 75 per cent higher than idea forge price band of Rs 638 to Rs 672 per share.
Bidders who would be allotted shares may see the credit of shares in the Demat account by 6 July.
Listing Price Expectation
“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 to its offer across investor categories mainly due to its market leadership in the Indian Unmanned Aircraft Systems (UAS) drone market and no direct peers in the listed space which would influence fancy listing gains,” said Prashant Tapse, Research Analyst at Mehta Equities Ltd
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“With market undertone remaining optimistic if we get stronger listing gains over and above 70%, We 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,” Tapse added.
ideaForge is a market leader in the Indian Unmanned Aircraft Systems (UAS) drone market with a market share of around 50 per cent as of fiscal 2022.
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd said, “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.”
Mishra said it was a great opportunity for investors to apply for this IPO and recommended investors to book profit on listing and exit their position, as after such a high listing, shares will be overvalued. Additionally, there is some business-related risk as well.
“We expect a strong price of around Rs 1000 plus on listing of the Idea Forge IPO,” said Avinnash Gorakssakar, Head of Research, Precision Investment Services.
ideaForge raised Rs 240 crore through fresh issues and more than Rs 320 crore through an offer for sale. The net proceeds from the fresh issue will be used for working capital requirements, repayment of debt and product development.
