IdeaForge Technology IPO To Open On 26th June: Should You Bid?

On June 26, subscriptions for ideaForge Technology's initial public offering (IPO) will be available and will end on June 29. Through the IPO, which consists of a fresh issue of shares worth Rs 240 crore and an offer for sale (OFS) of 48.69 lakh equity shares worth Rs 327 crore by the company's promoters and investors, the company intends to raise Rs 567 crore. Promoters Amarpreet Singh, Ashish Bhat, and Nambirajan Seshadri will participate in the OFS, along with other selling shareholders such as A&E Investment LLC, Agarwal Trademart Pvt Ltd, and Celesta Capital II Mauritius. Ashish Bhat will offload 1.58 lakh shares, Amarpreet Singh will offload 8,362 shares and Nambirajan Seshadri will sell 22,600 shares as a part of OFS.

The price range for the initial public offering has been set by the company at Rs. 638 to 672 per share. The anchor book will open on June 23, as per the report made public by ideaForge Technology. The company will fix the basis of allotment on Tuesday, 4 July 2023, and the company is going to be listed on BSE/NSE on Friday, 7 July 2023. The QIB part is allocated 75% of the net offer, or Rs 412-425 crore. 15% of the net offer or about Rs. 82-85 crore) is set aside for NII, while 10% or around Rs. 55-57 crore is fixed for the retail category.

Link Intime India Private is serving as the registrar of ideaForge Technology IPO whereas JM Financial and IIFL Securities are the lead managers of the public issue.

The lot size of ideaForge Technology IPO consists of 22 shares, hence retail investors are required to make a minimum investment of Rs 14,784 to subscribe to the issue.

Promoters of the company currently held a 33.97 per cent stake, with public shareholders holding the remaining shares. The largest shareholders in the firm are Florintree Enterprise LLP and Celesta Capital II Mauritius, each holding 11.85% and 11.42 percent stakes in the company. IdeaForge raised Rs 60 crore by offering 8.92 lakh shares in a pre-IPO placement, bringing the total amount of the new issuance down from Rs 300 crore to Rs 240 crore.

As per the market watchers, the grey market premium (GMP) of ideaForge Technology IPO today is Rs 550. The expected listing price for the ideaForge Technology IPO is Rs 1222 (cap price plus the current GMP), taking into account the higher price band of Rs 672. Accordingly, based on the latest GMP, the ideaForge Technology IPO is anticipated to be listed at a hefty premium of 81.85% on the listing day.

Should You Bid ideaForge Technology IPO?

Commenting on whether one should subscribe ideaForge Technology IPO, Nirav Karkera, Head of Research, Fisdom said "The company is clearly a leading player in the niche drone segment. The company's stated intent to use proceeds to improve upon the state of leverage is accretive to balance sheet ratios and metrics. Ideaforge's product portfolio is fairly diversified across civil as well as defence use-cases. The prevalent ban on imports of a range of drones along with domestic manufacturing-friendly policies can be viewed as critical tailwinds to growth. The financial profile has been robust and is expected to grow sustainably going ahead. We expect the IPO to attract strong investor interest."

A R Ramachandran, Co-founder & Trainer - Tips2trades said "Consistent sales & profit growth with strong ROE despite sudden increase in debt still makes IdeaForge Technology stock look very attractive. Investors can subscribe to this issue and hold for long-term gains."

Dr. Ravi Singh, Vice President and Head of Research, Share India said, "Ideaforge company is a market leader in the Indian Unmanned Aircraft Systems market with a market share of approximately 50% in fiscal 2022. Company's revenue has grown multi-fold from over the years. Though PAT has witnessed ups and downs, Investors may subscribe to this IPO for listing gain."

Vaibhav Kaushik, Research Analyst, GCL Broking said, "The stock seem great. Excellent UAS and mapping business concept that should be applied both short and long term. Having use in both the real world and the mining industry. In the long run, it might reach 2100. The listing is likely to happen around 1200."

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.