The initial public offering (IPO) of drone maker IdeaForge Technology was fully subscribed within initial hours on June 26, the first day of bidding.
The offer received bids for 1.71 crore equity shares against an issue size of 46.48 lakh, the latest data on exchanges showed, which means the issue was subscribed 3.69 times.
Retail investors bought 12.48 times their allotted quota and employees 8.47 times the small portion set aside for them. As many as 13,112 shares have been set aside for employees who get them at a discount of Rs 32 a share to the final issue price.
The company has reserved 75 percent shares of the offer for qualified institutional buyers (QIB), 15 percent for high networth individuals (HNI) and the remaining 10 percent for retail investors.
HNIs put in bids 5.13 times their reserved portion, while QIBs had bought 34,760 shares against the 25.28 lakh shares set aside for them.
The offer size has been reduced to 46.48 lakh shares, from 84.4 lakh after the company mobilised Rs 254.88 crore from anchor investors on June 23.
Even the fresh issue size had been reduced to Rs 240 crore from Rs 300 crore earlier, as the company raised Rs 60 crore in a pre-IPO placement from investors.
The drone manufacturing company is looking to raise Rs 567 crore through the IPO at the upper end of the price band of Rs 638-672 per share. The offer comprises a fresh issuance of shares worth Rs 240 crore and an offer for sale of 48.69 lakh shares by promoters and investors.
Founded in 2007 by Ankit Mehta, Rahul Singh, Ashish Bhat with Vipul Joshi, IdeaForge is the leader in the Indian unmanned aircraft systems (UAV) market, with a market share of approximately 50 percent in FY22. Promoters designed their first quadrotor UAV in 2004 while studying at IIT-Bombay.
It is backed by marquee investors like former Blackstone India head Mathew Cyriac's Florintree Enterprise LLP, and Venture capital investor Celesta Capital II Mauritius, which hold 11.85 percent and 12.78 percent stake, in the company.
IdeaForge will utilise the proceeds from the fresh issue for repaying debts, meeting working capital requirements and investment in product development, besides general corporate purposes.
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