Mumbai-based ideaForge Technology — a manufacturer of unmanned aircraft vehicles (drones) used in mapping, security and surveillance operations — launched an initial public offer (IPO), worth an estimated Rs 567 crore, on Monday, June 26. The bidding process will continue for three trading days, till June 29.   

EDITOR'S TAKE | How Anil Singhvi views the ideaForge Technology IPO and what he recommends

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Zee Business Managing Editor Anil Singhvi recommends applying for the ideaForge Technology IPO for listing gains only.

Singhvi finds the valuation to be reasonable. "It is not cheap, not very high."

The market wizard identified the following points for the upcoming public offer:

Positive

  • Strong growth outlook
  • The company is a market leader and first mover
  • Good names in pre-IPO investments and the anchor book

Negatives

  • Management not confident about quality issues
  • Financial track record not impressive
  • The company's order book reduced in 2023
  • Its working capital requirement is high

ideaForge Technology IPO: Key things to know

The ideaForge IPO finished the first day of the bidding process with a subscription of 3.7 times the shares on offer, having received bids for 1.7 crore shares as against the 46.5 lakh shares on offer, according to provisional exchange data.

Investor category Reservation Subscription
QIB 75% 1%
NII 15% 5.1x
Retail 10% 12.5x
Total 100% 3.7x

Under the IPO, potential investors can bid for ideaForge shares in a price range of Rs 638-672 apiece in multiples of 22, translating to Rs 14,036-14,784 per lot. 

The IPO of ideaForge Technology comprises fresh issuance worth Rs 240 crore, and an offer for sale (OFS) worth Rs 327 crore by promoters and existing shareholders. Read more on ideaForge IPO

Indian financial market will remain shut on June 28 for Bakri Id.

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