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IPO screener: Retail investors make beeline for ideaForge issue

The 567-crore initial public offering of ideaForge Technology witnessed a saw strong response on the opening day of the issue.

The offer, which closes on June 29 and comes at a price band of ₹638-672 a share, was subscribed 3.69 times as retail investors, non-institutional investors and employees bid heavily.

The company has reserved 75 per cent of the shares for qualified institutional buyers, 15 per cent for high-net-worth individuals and the balance 10 per cent for retail investors. The offer also includes a reservation of 13,112 equity shares for company’s employees at a discount of ₹32 per share to the final issue price. Investors can bid for a minimum of 22 equity shares and in multiples of 22 shares thereafter.

While the reserved for QIBs, who generally bid on the last day, subscribed just 0.01 times, the quota reserved for retail investors and HNIs was subscribed 12.48 times and 5.13 times, respectively. Employee portion saw bidding of 8.47 times at the end of Day 1.

Issue details

The IPO comprises fresh issuance of shares worth ₹240 crore and an offer-for-sale of 48.69 lakh equity shares by promoter and investors. Ashish Bhat, Amarpreet Singh, Nambirajan Seshadri, Naresh Malhotra, Sujata Vemuri, Sundararajan K Pandalgudi, A&E Investment LLC, Agarwal Trademart, Celesta Capital, Export Import Bank of India, Indusage Technology Venture Fund, Qualcomm Asia Pacific, and Society for Innovation and Entrepreneurship are the selling shareholders in the offer.

Also read: ideaForge Tech IPO: Should you subscribe?

The issue size has been reduced to ₹240 crore from ₹300 crore as the company on June 15 raised ₹60 crore in a pre-IPO placement by issuing 8.92 lakh equity shares to institutional investors, including Tata AIG General Insurance, 360 ONE Special Opportunities Fund- Series 9 and 10, Motilal Oswal Midcap Fund, and Think Investments PCC.

Anchor investors

As part of IPO process, ideaForge Technology has mopped up ₹254.88 crore from 31 anchor investors on Friday. The drone maker has finalised the allocation of 37.92 lakh equity shares to anchor investors at ₹672 a share, the higher end of the price band. Pinebridge Global Funds, Nomura Funds, Ashoka India Equity Investment Trust Plc, HSBC Mutual Fund, Goldman Sachs Funds, Carmignac Portfolio, Tata AIA General Insurance Company, ICICI Prudential Mutual Fund, Invesco India, Axis Mutual Fund, HDFC Mutual Fund, Nippon Life India, Aditya Birla Sun Life Trustee, Quant Mutual Fund and Max Life Insurance received the shares.

Utilisation of funds

The net proceeds from fresh issue will be utilised for repaying debts (₹50 crore), funding a working capital gap (₹135 crore), and investment in product development (₹40 crore), besides general corporate purposes.

ideaForge is a pioneer and the pre-eminent market leader in the Indian unmanned aircraft systems (UAS) sector with a market share of approximately 50 per cent in FY22. “Our UAVs are equipped with industry leading specifications and capabilities, comparable to those of other established global players in the UAV industry,” said the company on its website.



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