With its IPO, IdeaForge is now active in the market
IdeaForge Technology Limited started its Initial Public Offering (IPO) today, June 26, 2023, and it will run until June 29. 2023. The drone manufacturer firm has set the price range for the ideaForge IPO at Rs. 638 to Rs. 672 per equity share. However, ideaForge Technology Ltd. shares have already appeared on the black market. Market watchers claim that ideaForge shares are now trading on the black market for a premium of Rs. 450 per share. According to the ideaForge IPO subscription status, the public offering of the drone manufacturer businesses has received a robust response from individual investors.
The retail component of the public offering has been subscribed 4.48 times as of 12:28 PM on the first day of bidding, compared to 1.13 times for the IdeaForge Technology IPO. The IdeaForge Technology IPO grey market premium (GMP), according to market watchers, is now Rs. 485, which implies the grey market is anticipating a listing gain of almost 70% from the public issue on the IdeaForge IPO subscription opening day.
A bidder may submit their offer in lots, with each lot including 22 business shares. The drone manufacturer business has proposed offering its shares on both the NSE and BSE, with an anticipated listing date of July 7, 2023. The designated public issue’s official registrant is Link In Time India Private Ltd. The business would list at a Price to Earnings Ratio (P/E) of 87.54x with a market valuation of Rs 28,002 Million, taking into account the FY23 Annualised EPS of Rs. 7.68 on a post-issue basis.
P/E ratios for comparable businesses MTAR Technology, Data Patterns, and Astra Microwave Products are 58.52x, 84.95x, and 52.27x, respectively. Because they are pioneers, this IPO has added value as a subscription. a market leader in India’s UAS sector with a significant first-mover advantage, solid ties to a broad client base, and fair pricing in light of the company’s potential for future expansion.
The Mumbai-based business showed significant revenue growth between FY2020 and FY2022, with a Compound Annual Growth Rate (CAGR) of 237.58%. Favourable business conditions, more orders, and government programmes like the drone PLI programme all contributed to this expansion. There are hazards to take into account, according to Anubhuti Mishra, an equities analyst at Swastika Investment.
Though IdeaForge mainly depends on government-funded initiatives, doing so has a number of hazards. With the advent of more major participants via joint ventures with global drone firms, like as Adani Group, the competition is becoming more fierce.
IdeaForge’s IPO, which was announced today, has made remarkable strides in the short time since it was completely subscribed to the public. The Indian Drone Manufacturing Company’s worth has significantly increased, which is a really positive development.
