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Mumbai-based Drone maker ideaForge Technology is the pioneer and the pre-eminent market leader in the Indian unmanned aircraft systems ("UAS") market, with a market share of approximately 50% in fiscal 2022, has received bids of 23,38,24,338 shares against the offered 46,48,870 equity shares, at a price band of ?638-672, according to the data available on the stock exchanges.

The issue attracted significant interest from all investor categories, resulting in an overall subscription of 50.30 times on the third day of bidding.

Retail Portion was the most subscribed with a subscription of 64.48 times, followed by Non-Institutional Investors Portion with a subscription of 64.06 times, Employee Portion was subscribed 63.99 times, whereas, Qualified Institutional Buyer Portion was subscribed 38.62 times. The issue kicked off for subscription on Monday, June 26, and closes on Friday, June 30, 2023.

Broking houses like Motilal Oswal, Anand Rathi, Sharekhan, SBICAP Securities, Nirmal Bang, Reliance Securities, Hem Securities, Hensex Securities, BP Equities (Stoxbox), Choice Equity, Arihant Capital, Swastika Investmart, GEPL Capital, INDSEC Securities and Marwadi Financial Services have given a “SUBSCRIBE” rating to the issue.

The said brokerages collectively recommend subscribing to the IPO of ideaForge Technology Limited for both short-term listing gains and long-term investment prospects. The IPO valuation is considered fair, given ideaForge's diverse product portfolio, robust client relationships, and high entry barriers. The government's focus on the defense sector and rising enterprise demand are expected to benefit ideaForge. Moreover, the ban on drone imports and the projected growth of the Indian drone industry present substantial opportunities. Subscribing to the IPO is recommended by the brokerages due to contracted order book value and a significant share of revenues derived from the Indian defense forces. While risks such as dependence on government-aided projects and emerging competition exist, ideaForge's market dominance, revenue growth, and potential government support make it an attractive proposition for investors.

JM Financial Limited and IIFL Securities Limited are the sole book running lead manager while Link Intime India Private Limited is the registrar to the offer.

Company Information

Founded in 2007 and led by first generation entrepreneurs, ideaForge, has a first mover advantage and primarily caters to customers with applications for surveillance, mapping and surveying. Its customers include the armed forces, central armed police forces, state police departments, disaster management forces, forest departments besides other civil customers.

Comparing the last 2 fiscals, its revenue from operations increased by 16.66% from ?159.44 crore in the Fiscal 2022 to ?186.01 crore in the Fiscal 2023, whereas profit after tax stood at Rs 31.99 crore in Fiscal 2023.

The table below shows subscription data for all the categories of investors:

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