The IPO of India’s leading dronemaker Ideaforge has seen tremendous response from investors for the first two days. Overall, the issue was subscribed 8.58 times, with the retail portion getting subscribed by a massive 27 times.
Ideaforge is a pioneer in India’s drone market with an early mover advantage having had enduring relations with its customers. The company also boasts of a famed ‘3 idiots’ connection, where it designed and supplied one of the first drones in the country to the cinema.
According to market sources, the company’s shares are commanding a premium of Rs 540, indicating big listing gains for investors.
The IPO comprises a fresh issue of equity shares of up to Rs 240 crore and an offer for sale (OFS) of up to 48.6 lakh shares by selling shareholders.
Under the OFS, Ashish Bhat will sell 1.58 lakh shares, Amarpreet Singh will offload 8,362 shares and Nambirajan Seshadri will sell 22,600 shares. Other selling shareholders include A&E Investment LLC, Agarwal Trademart Pvt Ltd, and Celesta Capital II Mauritius among others.
The company is offering its shares in the range of Rs 638-672 apiece, and at the upper end of the price band, it is planning to raise Rs 567 crore.The proceeds from its fresh issuance to the tune of Rs 50 crore will be utilised for repayment of certain indebtedness availed by the company, Rs 135 crore towards funding working capital requirements, Rs 40 crore for investment in product development and general corporate purposes.
JM Financial and IIFL Securities are the book-running lead managers and Link Intime India is the registrar for the issue.