IdeaForge Technology, a leading drone manufacturer in India, has launched its IPO today with a strong response from investors. The company is offering its shares at a price range of Rs 638-672 per share and aims to raise Rs 567 crore through the issue. The IPO will close on June 29.
The subscription data shows that the issue was 51 per cent filled within an hour of opening. The retail and employee segments were oversubscribed by 2.11 times and 2.05 times respectively, while the NII segment received 45 per cent bids. The QIB segment did not get any bids yet.
The company plans to use the net proceeds from the fresh issue for debt repayment, working capital needs, product development and general corporate purposes. The issue also includes an offer for sale of 4,869,712 shares by promoters and existing shareholders.
The company has already raised Rs 254.88 crore from 31 anchor investors at Rs 672 per share. Some of the prominent investors include Nomura, Invesco, HSBC, Goldman Sachs and others.
The grey market premium for ideaForge shares was around Rs 490 today, indicating a strong listing gain potential.
ideaForge Technology is engaged in making unmanned aircraft systems (UAS) for mapping, security and surveillance applications. The company has a market share of about 50 per cent in the Indian UAS market and has been ranked 7th globally in the dual-use category by Drone Industry Insights.
Most of the brokerages have given a positive rating to the issue, citing its niche business model, rising demand for drones and favourable outlook for the sector. However, some have also cautioned about its high valuations, lack of long-term contracts and high competition in the industry.
The IPO is managed by JM Financial and IIFL Securities and the shares will be listed on both BSE and NSE, likely on July 7.
ideaForge Technology was founded in 2007 and is based in Mumbai. It has two main software products: BlueFire Live! and BlueFire Touch that enable live streaming and mission planning for drones respectively.