The initial public offering (IPO) of ideaForge Technology continued to receive very strong response from investors. The issue was subscribed 9.67 times at 3:15 pm on Day 2, June 27, 2023. The company has received bids for 4,49,73,830 shares against 84,41,764 shares on offer, according to data from the BSE.
The retail investor portion was subscribed the most, 29.69 times, followed by the non-institutional investors' (NII) quota, which was subscribed 14.87 times. Meanwhile, the part reserved for qualified institutional buyers (QIB) was subscribed 35 percent and the employee part was subscribed 19.11 times.
The retail investors' portion received bids for 2.50 crore shares against 8.42 lakh shares on offer for this segment, whereas the NII portion received bids for 1.88 crore shares against 12.64 lakh on offer for this segment. Meanwhile, the QIB portion received bids for 8.95 lakh shares against 25.28 lakh on offer for this segment. Finally, the employee portion received bids for 2.5 lakh shares versus 13,112 shares offered.
GMP: The company's shares witnessed a strong premium of ₹540 in the grey market on Tuesday, indicating a strong demand for the IPO. This was up from ₹530 on Monday and ₹465 on Friday.
However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly.
The ₹567 crore initial public offering of ideaForge, the country's leading drone manufacturer, opened for subscription on Monday, June 26. The issue, which has a price band of ₹638-672, will close for subscription on June 29.
The IPO comprises a fresh issue of equity shares of up to ₹240 crore and an offer for sale (OFS) of up to 48.6 lakh shares by selling shareholders. The fresh issue portion from the offer has been reduced to this current amount from ₹300 after the firm raised ₹60 crore by offloading 8.92 lakh shares to institutional investors in a pre-IPO placement round.
The date of allotment of units is likely to be 4 July and the issue is expected to list on the bourses on 7 July.
The proceeds from its fresh issuance to the tune of ₹50 crore will be utilised for repayment of certain indebtedness availed by the company, ₹135 crore towards funding working capital requirements, ₹40 crore for investment in product development and general corporate purposes.
ideaForge holds a significant market share of approximately 50 percent in the Indian unmanned aircraft systems ("UAS") market as of fiscal 2022. The company boasts the largest operational deployment of indigenous drones across India, with an ideaForge-manufactured drone taking off every five minutes on average for surveillance and mapping purposes, as per the company's DRHP report.
Founded in 2007 by Ankit Mehta, Rahul Singh, and Ashish Bhat, ideaForge made early strides in the UAV market in India and became the first organization to indigenously develop and manufacture VTOL UAVs in 2009.
