Drone maker Ideaforge Technology has recorded the best performance amongst the IPOs listed since November 2021, on its debut on July 7. The stock surged nearly 93 percent on a day when we saw a correction in the equity markets after their record highs.
This is the first company getting listed on the bourses from the drone industry.
The stock opened at Rs 1,300 on the NSE, higher by 93.5 percent over the issue price of Rs 672, which was much better than the listing expectations by analysts. Analysts had expected it to debut with a 75-77 percent premium.
Ideaforge touched an intraday high of Rs 1,343.95, almost double compared to the issue price and a day's low of Rs 1,260 (up 87.5 percent). Even a low of the day was much higher than its listing price expectations as the stock seems to be enjoying a first-mover advantage, healthy equity market conditions and strong potential in the unmanned aircraft systems industry.
It is to be noted that the drone maker's Rs 567 crore public issue was subscribed 106.6 times during June 26-30.
Ideaforge shares finally settled at Rs 1,294.95, up 92.70 percent with a volume of 97.11 lakh shares, while on the BSE, the closing was higher by 92.78 percent at Rs 1,295.50, with a volume of 6.49 lakh shares.
Also read: After IdeaForge Tech's sky-high listing, a word of caution from analysts
"Ideaforge Technology made a tremendous entry into the market and this is a significant gain of around 93 percent for investors," Anubhuti Mishra, Equity Research Analyst at Swastika Investmart said.
While there is no doubt that this was a great opportunity for investors, and it has delivered some surprising returns, investors should book profits and exit their positions, she advised. This is because after listing the stock is already trading at a significant premium to its issue price.
Additionally, "there are some business-related risks associated with the company, so it is better to lock in these gains now rather than take the risk of carrying them forward however, aggressive investors can still hold it with stop-loss at Rs 1,170," Anubhuti said.
Prashanth Tapse, Sr VP Research Analyst at Mehta Equities also recommended profit booking as post listing, the valuations are stretched and difficult to sustain, while risky fancy investors can hold for medium- to long-term to play on drone demand.
Before Ideaforge, Latent View Analytics was the last to clock such a robust performance on a listing day. It closed the day with 148 percent gains at Rs 488.6 on November 23, 2021.
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The 2021 was a great period for listing. As per the data available with chittorgarh.com, apart from Latent, we have FSN E-Commerce Ventures (Nykaa), Tatva Chintan Pharma Chem, Zomato, Clean Science and Technology, GR Infraprojects, MTAR Technologies, Nureca, Tega Industries, Sigachi Industries, Paras Defence, Go Fashion and Indigo Paints, which recorded gains between 60-270 percent on listing day.
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