New Delhi:- IdeaForge Technology Limited launched its Initial Public Offer (IPO) today on 26th June 2023 for the subscribers on bidding and will remain till 29th June 2023. The drone maker company has fixed the ideaForge IPO price band at Rs. 638 to Rs. 672 per equity share. However, shares of ideaForge Technology Ltd have already made their debut in the grey market. According to market observers, ideaForge shares are available at a premium of Rs. 450 per share in the grey market today. As per the ideaForge IPO subscription status, retail investors have responded strongly to the drone maker companies' public offer.
By 12:28 PM on day one of bidding, IdeaForge Technology IPO has been subscribed 1.13 times whereas the retail portion of the public offer has been subscribed 4.48 times. According to market observers, IdeaForge Technology IPO grey market premium (GMP) today is Rs. 485 which means the grey market is expecting around 70 percent listing gain from the public issue on the IdeaForge IPO subscription opening date.
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A bidder will be able to apply in lots and one lot would comprise 22 company shares. The drone maker company has proposed to list its shares on both NSE and BSE and the likely date for share listing is 7th July 2023. Link In Time India Private Ltd has been appointed as the official registrar of the public issue. Considering the FY23 Annualized EPS of Rs. 7.68 on a post-issue basis, the company is going to list at a Price to Earnings Ratio (P/E) of 87.54x with a market cap of Rs 28,002 Million.
Peer companies MTAR Technology, Data Patterns, and Astra Microwave products have P/E ratios of 58.52x, 84.95x, and 52.27x, added. The adding value of this IPO as a subscription is because they are pioneers. A leader in the UAS industry in India with a major first-mover advantage and strong relationships with a diverse customer base, as well as reasonable pricing given the company's future growth potential.
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The Mumbai-based company reported impressive revenue growth at a Compound Annual Growth Rate (CAGR) of 237.48 percent from FY2020 to FY2022. This growth was supported by a favorable business environment, increased orders, and government initiatives such as the drone PLI program. But Swastika Investment equity analyst Anubhuti Mishra said there are risks to consider.
IdeaForge relies heavily on government-backed projects, but relying on a single source of income poses significant risks. Competition is intensifying with the entry of other big players such as Adani Group through joint ventures with foreign drone companies.
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IdeaForge’s IPO released today is showing great progress in just a few hours since they had issued fully subscribed publicly. The massive increase in the value of the Indian Drone manufacturing Company is very progressive.
