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Published: July 7, 2023
Updated: July 7, 2023

IdeaForge Technology Makes a Remarkable Debut, Doubling Investors' Wealth

Drone manufacturer IdeaForge Technology had an impressive entry into the stock market, with its shares listing at a significant premium over the issue price. The company's stock price doubled, reaching an intra-day high, resulting in substantial gains for investors. While the listing presents a great opportunity, it is advisable to book profits considering the premium valuation and associated business risks.

The Stellar Debut:

IdeaForge's shares were listed at Rs 1,305.10 on the BSE, marking a 94 percent premium over the issue price of Rs 672 per share. The stock opened at Rs 1,300 on the National Stock Exchange (NSE), setting a positive tone for the company's debut. Throughout the day, the market price continued to surge, reaching a high of Rs 1,344 on the BSE. As of now, IdeaForge is trading at Rs 1,268, representing an 88 percent increase from the issue price.

Advice for Investors:

While the stock's performance has exceeded expectations, market experts suggest that investors should consider booking profits and exiting their positions. The stock is already trading at a substantial premium, and there are inherent business-related risks associated with the company. However, more aggressive investors can choose to hold the stock, setting a stop loss at Rs 1,170.

IPO Success:

IdeaForge's initial public offering (IPO) received an overwhelming response from all investor categories, with the overall issue being oversubscribed 106 times. Qualified Institutional Buyers (QIBs) subscribed 125.81 times, while Retail Individual Investors (RIIs) and non- institutional investors showed strong interest with subscriptions of 85.2 times and 80.58 times, respectively.

Leading the Drone Market:

IdeaForge is a pioneer and the dominant market leader in the Indian unmanned aircraft systems (UAS) market, with a 50 percent market share in fiscal year 2022. The company boasts the largest operational deployment of indigenous UAVs in India, with an IdeaForge- manufactured drone taking off every 5 minutes on average for surveillance and mapping purposes as of fiscal year 2023. IdeaForge's UAVs have completed over 350,000 flights as of March 31, 2023.

Product Integration and Competitive Edge:

In addition to manufacturing UAVs, IdeaForge specialises in the complete integration of payloads, communication systems, and packaging. The company has also developed its own software stack for flight safety, autopilot sub-systems, battery, power, and communication in their UAVs. Analysts highlight IdeaForge's advantage as a pure-play drone manufacturer, with a wide product portfolio, strong client relationships, and high entry barriers compared to its peers.

Remarkable debut

IdeaForge Technology's stock market debut has been nothing short of remarkable, with investors witnessing their wealth double in a short span of time. The company's position as a market leader in the Indian UAV market, coupled with its expertise in drone manufacturing and product integration, has attracted significant investor interest. While it is advisable to lock in gains considering the premium valuation and associated risks, the future looks promising for IdeaForge, with potential benefits from government support in the defence sector and rising enterprise demand.