Gama Times

The IPO includes a fresh issue of shares amounting to Rs 240 crore and an offer for sale component where the promoters will divest 48.7 lakh shares. The price band for the IPO is set at Rs 638-672 per equity share. The grey market premium for ideaForge shares increased by 70% on Monday, reaching a premium of Rs 475 over the IPO price, indicating a potential listing price of Rs 1,147 per share at the upper end of the price band.

The fresh issue portion of the offer has been reduced to Rs 240 crore from Rs 300 crore as ideaForge raised Rs 60 crore by selling 8.92 lakh shares to institutional investors in a pre-IPO placement round. The IPO subscription period will close on June 29, with the allotment of units expected to take place on July 4. The company’s shares are projected to list on the stock exchanges on July 7.

ideaForge specializes in manufacturing UAVs that have various applications in mining area planning, mapping, and assisting industries like construction, real estate, and defense forces in conducting Intelligence, Surveillance, and Reconnaissance (ISR) operations along borders.

Financial advisory firms have provided their views on the ideaForge IPO. Mehta Equities suggests subscribing to the IPO for potential listing gains. They believe that ideaForge, as a pioneer and market leader in the Indian UAV drone market, offers a valuable investment opportunity due to its leadership position and first-mover advantage. While the IPO is priced at a higher valuation with no clear peers for comparison in the drone space, the company’s growth potential and demand in the industry make it an attractive option for listing gains.

Motilal Oswal also recommends subscribing to the ideaForge IPO. They highlight the company’s leading product portfolio and its presence in both civil and defense applications. With a significant increase in revenue and positive profit figures over the past two years, they believe that ideaForge has strong growth potential, making the IPO an attractive investment opportunity. Furthermore, they anticipate potential listing gains given the current market conditions and high interest in defense stocks.

Dilip Davda suggests considering subscription to the IPO with caution. While ideaForge holds a dominant position in the Indian UAS segment and has shown growth in its top lines, its bottom line for FY23 declined due to the impact of employee stock ownership plans (ESOPs). The issue’s pricing is considered aggressive, given the hype surrounding the drone segment, and the asking price-to-earnings (P/E) ratio for FY23 is relatively high. However, well-informed and cash-surplus investors may still consider investing for potential long-term rewards.

Please note that these opinions are from financial advisors and should not be considered as personal investment advice. It’s crucial to conduct your own research and consult with a financial advisor before making any investment decisions.

 

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