IdeaForge’s IPO subscribed 6X on day 2; issue to now close on June 28

• IdeaForge’s public issue has been subscribed 6.38 times on the second day of the public issue.
• Retail portion has been subscribed by 21.28 times, while the QIB portion is yet to be fully subscribed.
• The issue closes for subscription on June 28 now instead of June 29.

IdeaForge’s initial public offering (IPO) of shares continued to rake up bids from retail investors on the second day of the issue on Tuesday. The issue, at the time of publishing, has been overall subscribed 6.38 times the shares on offer. The issue will also now close on June 28 instead of June 29, after the trading holiday for Bakrid has changed, but it will be open for subscription on Wednesday, which wasn’t available earlier.

The retail portion of the shares on offer of the drone maker, has been garnering interest and has been subscribed by 21.28 times over as of 11:53 am on Tuesday.

Even the portion reserved for non-institutional investors was subscribed nine times over. The issue however received tepid response from qualified institutional buyers, as it’s yet to be fully subscribed.

As much as 75% of the offer is reserved for QIBs while 15% is meant for non-institutional investors, and 10 percent has been set aside for retail investors.

Another public issue by Cyient DLM opened for bids on Tuesday.

Category	No of times subscribed
QIBs	0.05
Non institutional investors	9:03
Retail	21.28
Total	6.38

Source: BSE

About the company

The company which was set-up in 2007, manufactures and deploys drones with applications across mapping, security and surveillance. As of 31 May 2023, it catered to 265 clients spanning across Indian defence customers and civil customers comprising certain of the central armed police forces, state police departments, disaster management forces, forest departments and private contractors.

“Their drones assist defence forces in conducting intelligence, surveillance and reconnaissance (ISR) operations along borders, help navigate a wide range of mining area planning and help boost construction and real estate,” said a report by Stoxbox.

The public issue includes an offer for sale as well as fresh issue, and the proceeds from the fresh issue will be used towards repayment and prepayment of loans, funding working capital requirement, investment in product development and general corporate purposes.

“Due to their leadership and first mover advantage, they have been able to improve users' experiences by incorporating consumer data and ongoing technological advancements,” says Stoxbox which had a ‘subscribe’ rating on the issue for the benefit of listing gains.

As of Monday, the company’s issue is commanding a premium of over ₹450 in the grey market, according to media reports. Grey market premium (GMP) is the premium at which an unlisted stock is traded in an unofficial market.