Forge Technology Ltd, a prominent drone manufacturer, witnessed a remarkable subscription response on the first day of its initial public offering (IPO). The IPO, which opened for subscription on Monday, June 26, garnered significant interest from retail and employee investors, leading to an overall subscription of 1.01 times by the end of the day. The public issue is set to close on Thursday, June 29. Retail investors showcased substantial enthusiasm for the IPO, with their portion being oversubscribed 4.04 times.
The retail segment received bids for 34,52,130 shares against the 8,42,865 shares on offer, surpassing expectations within a mere thirty minutes of the launch. Similarly, employees also displayed strong confidence in the company, subscribing to the issue 3.09 times, with bids for 40,810 shares against the 13,112 shares available for this segment. On the other hand, the non-institutional investors’ portion witnessed a subscription of 97%, with bids received for 12,35,938 shares against the 1,12,64,297 shares offered. However, the qualified institutional buyers’ (QIBs) portion did not receive significant subscription.
The IPO price band for IdeaForge has been set at Rs 638 to Rs 672 per equity share. The company aims to raise ₹567 crore through the IPO, comprising a fresh issue of shares worth ₹240 crore and an offer for sale (OFS) of 48.69 lakh equity shares valued at ₹327 crore by promoters and investors. In a pre-IPO transaction, IdeaForge secured approximately ₹60 crore, resulting in a reduction in the new issuance size from ₹300 crore to ₹240 crore. Promoters Ashish Bhat, Amarpreet Singh, and Nambirajan Seshadri will participate in the OFS, while other selling shareholders include A&E Investment LLC, Agarwal Trademart Pvt Ltd, Celesta Capital II Mauritius, among others.
The company plans to finalize the allotment basis on Tuesday, July 4, with refunds scheduled to commence on Wednesday, July 5. IdeaForge Technology’s shares are expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Friday, July 7. The net proceeds from the IPO will be utilized by IdeaForge to repay debts, fulfill working capital requirements, invest in product development, and cater to general corporate needs. Overall, the strong subscription response from retail and employee investors indicates their confidence in IdeaForge Technology and its future prospects, setting the stage for a successful IPO and listing.