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The shares of ideaForge Technology will be listed on the bourses today. The company has fixed the IPO price at ₹672, at the upper end of the ₹638-672 price band.
Analysts expect a strong market debut given the overwhelming response to the IPO from all categories of investors.
The ₹567-crore initial public offering (IPO) was subscribed 106.6 times during June 26-30 period.
QIB portion was subscribed 125.8 times, while retail and non-institutional investors’ portions were subscribed 85 times and 80.58 times, respectively. Employee portion was subscribed 96.58 times.
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart, said: “The GMP for ideaforge’s IPO is currently around 75 per cent, which means that we can expect the stock to list at around ₹1,182 (₹672 + ₹510) on the first day of trading.”
“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,” he added.
“Undoubtedly, it was a great opportunity for investors to apply for this IPO, but we would recommend investors to book profit on listing and exit their position, as after a high listing, shares will be overvalued, and secondly, there is some business-related risk as well,” he said.
The IPO consisted of a fresh issuance of shares worth ₹240 crore and an offer-for-sale of 48.69 lakh equity shares by promoter and investors.
Ashish Bhat, Amarpreet Singh, Nambirajan Seshadri, Naresh Malhotra, Sujata Vemuri, Sundararajan K Pandalgudi, A&E Investment LLC, Agarwal Trademart, Celesta Capital, Export Import Bank of India, Indusage Technology Venture Fund, Qualcomm Asia Pacific, and Society for Innovation and Entrepreneurship were the selling shareholders in the offer.
The fresh issue size has been reduced to ₹240 crore from ₹300 crore earlier as the company on June 15 raised ₹60 crore in a pre-IPO placement by issuing 8.92 lakh equity shares to institutional investors, including Tata AIG General Insurance, 360 ONE Special Opportunities Fund- Series 9 and 10, Motilal Oswal Midcap Fund, and Think Investments PCC.
Anchor investors
As part of IPO process, ideaForge Technology mopped up ₹254.88 crore from 31 anchor investors. The drone maker has finalised the allocation of 37.92 lakh equity shares to anchor investors at ₹672 per share, the higher end of the price band. Some of the anchor investors were Pinebridge Global Funds, Nomura Funds, Ashoka India Equity Investment Trust Plc, HSBC Mutual Fund, Goldman Sachs Funds, Carmignac Portfolio, Tata AIA General Insurance Company, ICICI Prudential Mutual Fund, Invesco India, Axis Mutual Fund, HDFC Mutual Fund, Nippon Life India, Aditya Birla Sun Life Trustee, Quant Mutual Fund and Max Life Insurance.
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