IPO listed on 7 Jul'23
ideaForge Technology Ltd
Minimum Investment
₹ 14,784 / 22 shares
Grey market premium
₹ 450 (67% premium)
Issue price
₹ 672
Listing price
₹ 1,300
Listing gains
628 (93%)
Listing on
July 7, 2023
Our Verdict:
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- ideaforge has a well-established track record, backed by a sturdy pipeline of orders and promising growth potential. While there have been fluctuations in the company's net profit, its revenue has surged exponentially over the years, painting a promising financial picture.
- The company's P/E ratio, standing at a hefty 87.5x on FY23 earnings, indicates a rather aggressive valuation when compared to peers. However, the current Grey Market Premium (GMP) - a barometer of investor sentiment, suggests a stellar debut for the IPO. Thus, investors with a risk appetite eyeing immediate listing gains, may subscribe to the IPO.
- As for long-term investors, it might be more prudent to wait until the valuations cool off and the stock price stabilises before making an entry.
About the company
Founded in
8 Feb'07
Managing director
Ankit Mehta
- Recognized as a leading pioneer in the Indian drone manufacturing industry, boasting a diverse product portfolio and commanding 50% market share as of FY22
- Demonstrates strong innovation with a total of 41 patent applications; 20 filed internationally and 21 locally in India
- Established a significant milestone as the first Indian company to domestically manufacture vertical take-off and landing UAVs (unmanned aircraft vehicles) back in 2009
- Ranked 7th globally in the dual-use category (civil/defense) among drone manufacturers
STRENGTHS
- Largest Drone manufacturer in India, with 50% market share
- Strong order book: The order book as of March 2023 totalled to Rs 192.272 crore, of which ~96% is from government entities
- High customer retention: IdeaForge has derived ~94% of its consolidated revenue from operations from repeat customers over FY21-23
- Strong financial performance: 5x growth in consolidated revenue over FY21-23, while net profit turned positive in the last two years with FY23 net profit at Rs 320 mn
RISK FACTORS
- IdeaForge has significant working capital gap, which if it is unable to fund could adversely affect impact the business
- Declining trend in net profit: The bottom line dropped 27% year-on-year in FY23 to Rs 32 crore, but mainly due to increase in ESOPs granted to employees
- Based on FY23 performance, the issue seems aggressively priced at a P/E multiple of 87.5x
Issue details
Issue type
Mainstream
Issue size
₹ 567 crore
Fresh Issue
₹ 240 crore
OFS
₹ 327 crore
Price range
₹ 638 - 672
Lot size
22 shares
Issue Objective
Net proceeds of the issue (fresh issue) will be utilised towards:
- Repayment/ prepayment of borrowings availed by the company;
- Funding working capital requirements;
- Investment in product development; and
- General corporate purposes
Dates
Bidding open
26 Jun'23
Bidding close
30 Jun'23
Allotment date
4 Jul'23
Refund date
5 Jul'23
Listing
7 Jul'23
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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