The initial public offering (IPO) of ideaForge Technology continued to receive exceptional response from investors. The issue was subscribed 87.32 times at 2:50 pm on its final day of bidding, June 30, 2023. The company has received bids for 40.59 crore shares against 84.41 lakh shares on offer, according to data from the BSE.
The part reserved for qualified institutional buyers (QIB) was subscribed to the most, 98.71 times, followed by the employee quota, which saw 90.91 times subscriptions. Meanwhile, the retail investor's portion was subscribed 81.79 times and the non-institutional investors' (NII) quota saw 78.2 times bids.
The QIB portion received bids for 23.69 crore shares against 25.28 lakh on offer for this segment while the employee portion received bids for 11.9 lakh shares versus 13,112 shares offered. The retail investor's portion saw bids for 6.89 crore shares against 8.42 lakh shares on offer for this segment and finally, the NII quota saw bids for 9.88 crore against 12.64 lakh on offer for this segment.
GMP: The company's shares witnessed a strong premium of ₹550 in the grey market on Friday, indicating a strong demand for the IPO. This was the same since June 27.
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.
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.
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 date of allotment of units is likely to be 4 July and the issue is expected to list on the bourses on 7 July.