ideaForge Tech IPO listing: Shares make a stellar debut; here's what investors may do

Mumbai-based drone maker ideaForge Technology's shares made a strong debut in the secondary market on Friday, July 7, listing on bourses BSE and NSE at a huge premium over the IPO price range.

ideaForge Tech shares made a stellar debut on BSE and NSE on July 7. | Image: Ideaforgetech.com

ideaForge Technology shares made a stellar debut in the secondary market on Friday, July 7, listing at Rs 1,305.1 apiece on BSE — a premium of 94.2 per cent over the upper end of the IPO price range. On NSE, the ideaForge stock began its journey at Rs 1,300 apiece, a premium of 93.5 per cent.

Mumbai-based drone manufacturer ideaForge's IPO, to raise up to Rs 567 crore, concluded last month with a subscription of 106 times the shares on offer. The ideaForge stock is traded on the exchanges with the symbol IDEAFORGE.

EDITOR'S TAKE | What to do with ideaForge Tech shares now?

Zee Business Managing Editor Anil Singhvi, who had recommended applying for the IPO for listing gains only citing a reasonable valuation, suggests shareholders to hold on to their positions with a trailing stop loss.

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"Don't buy at current levels (listing price), as it is expensive here... Wait for around Rs 1,000-odd levels to buy with a stop loss of Rs 100 below the market price," the market wizard said.

ideaForge Technology IPO received robust response from investors

The IPO, which was open for subscription from June 26 to June 30, received bids for 49.3 crore shares as against the 46.49 lakh shares on offer, with strong participation from all categories of investors, according to provisional exchange data. The IPO was a combination of fresh issuance, and an offer for sale (OFS) by promoters and existing shareholders.

Investor category	Reservation	Subscription (No. of times the shares on offer)
QIB	75%	125.8
NII	15%	80.6
Retail	10%	85.2
Total	100%	106.1

Through the subscription window, ideaForge Technology shares were available for bidding in a price band of Rs 638-672 apiece in multiples of 22, translating to Rs 14,036-14,784 per lot.

The company plans to utilise the proceeds from the IPO towards debt repayment, working capital, product development, and general corporate purposes.

Ahead of the IPO, ideaForge raised about Rs 60 crore from institutional investors.

What does ideaForge do?

ideaForge specialises in manufacturing unmanned aircraft systems — or drones — to entities operating in the areas of surveillance, mapping and surveying. Read the story of ideaForge: From humble beginnings and 26/11 terror attacks to an IPO

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