ideaForge Rs 567 crore IPO opened for subscription on 26 June and was fully subscribed within hours of opening. The issue has been booked 1.32 times so far, with total bids of 61,39,672 shares. Qualified institutional buyers (QIBs) have bid for a fraction of their reserved portion. Retail investors subscribed 5.23 times. The NII portion was subscribed 1.33 times and employees subscribed 3.67 times. The IPO closes for subscription on Thursday, 29 June.
ideaForge shares’ grey market premium (GMP) soared 78.87% on Monday, commanding a premium of Rs 530 over the IPO price, implying a listing price of Rs 1,202 per share at the upper edge of the price band. The price band for the public issue is set at Rs 638-672 per equity share.
The fresh issue portion from the offer has been reduced to Rs 240 crore from Rs 300 as ideaForge raised Rs 60 crore by offloading 8.92 lakh shares to institutional investors in a pre-IPO placement round. The IPO will close for subscription on 29 June. The date of allotment of units is projected to be 4 July, following which, the issue is expected to list on the bourses on 7 July. ideaForge manufactures Unmanned Aircraft Vehicles for Mapping, Security & Surveillance. These drones are capable of a wide range of mining area planning, and mapping applications.
Should you subscribe ideaForge IPO?
“ideaForge has one of the industry’s leading product portfolios with a dual presence in both civil and defence applications. IFL’s revenue jumped >5x over FY21-23 to Rs 1.9 billion, while PAT turned positive in the last two years, with FY23 profit at Rs 320 million. Hence we recommend Subscribe. Further, given the current buoyant market and high interest for defence stocks, the issue could see listing gains as well,” said analysts at Motilal Oswal.