IdeaForge almost doubles investor money on listing, beats grey market expectations handsomely

• IdeaForge lists at ₹1,305 which is a 94% premium over its IPO price.
  
• The grey market has been expecting the listing day premiums to be over ₹510.
  
• The company had raised ₹567 crore from its IPO, after the issue was subscribed 106 times the shares on offer.
  

Drone maker IdeaForge made a stellar debut on the exchanges on Friday — listing at ₹1,305 with a 94% premium over its IPO price.

The stock listed at a premium of ₹633, much ahead of the IPO price of ₹672, on listing.

It also beat grey market expectations by a large margin. The grey market has been expecting the listing day premiums to be over ₹510, expecting the stock to list over ₹1,000, as per media reports.

Grey market is the unofficial market where stocks are traded before they are listed.

“Considering the overwhelming response from all types of investors, we are expecting a strong 70% plus listing gain backed by first-mover advantage and a healthy market mood,” said Prashanth Tapse, Senior VP (research), Mehta Equities.

The company’s marketcap stood at ₹5,438 crore, as per data from BSE.

The company had raised ₹567 crore from its IPO, after the issue was subscribed 106 times the shares on offer.

IdeaForge was supposed to list on July 10, but the listing date was moved up to July 7.

IdeaForge IPO subscription details
Source: BSE

The first-mover advantage

The company, which was set up in 2007, manufactures and deploys drones with applications across mapping, security and surveillance. As of 31 May 2023, it catered to 265 clients spanning Indian defence and civil customers, including some of the central armed police forces, state police departments, disaster management forces, forest departments and private contractors.

“Their drones assist defence forces in conducting intelligence, surveillance and reconnaissance (ISR) operations along borders, help navigate a wide range of mining area planning and help boost construction and real estate,” said a report by Stoxbox.

The public issue includes an offer for sale as well as fresh issue, and the proceeds from the fresh issue will be used towards repayment and prepayment of loans, funding working capital requirement, investment in product development and general corporate purposes.

“Due to their leadership and first-mover advantage, they have been able to improve users' experiences by incorporating consumer data and ongoing technological advancements,” says Stoxbox, which had a ‘subscribe’ rating on the issue for the benefit of listing gains.