IdeaForge Technology makes a stellar debut, lists at 93% premium to IPO price

However, analysts now recommend investors to book profit on listing and exit their position, as after such a high listing, they believe the shares will be overvalued.

"While there is no doubt that this was a great opportunity for investors, and it has delivered some surprising returns, we would recommend that investors should book profits and exit their positions. This is because after listing the stock is already trading at a significant premium to its issue price," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.

Additionally, Mishra said that 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 1170," the analyst said.

"A fantastic listing as expected for IdeaForge, becoming the first public issue since 2021 to get bids more than 100 times subscription with market undertone remaining strong. Considering the overwhelming response from all types of investors followed by first-mover advantage, hence post listing the valuation would be stretched and difficult to sustain and recommend allotted investors to book profits on the listing day while risky fancy investors can hold for medium to long term to play on drone demand," said Prashanth Tapse of Mehta Equities.

The Rs 567-crore initial public offering (IPO) has seen a bumper response from the investors during the four-day bidding process between June 26-30 fetching an overall subscribed 106.06 times. It became the first issue after December 2021 to get bids for more than 100 times.

The category reserved for qualified institutional bidders (QIBs) was subscribed a whopping 125.81 times, while the quota for non-institutional bidders (NIIs) was booked 80.58 times. The portion of retail investors was subscribed 85.20 times, while the employees' portion fetched 96.65 times bids.

The company had already garnered Rs 182 crore from 14 anchor investors. The company has allocated 63.84 lakh equity shares at Rs 285 per share to anchor investors.

The public offer consists of a fresh issue of Rs 240 crore and an offer for sale of 48.69 lakh equity shares by shareholders. Under the OFS, Ashish Bhat will offload 1.58 lakh shares, Amarpreet Singh will sell 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 OFS money will go to selling shareholders, while the net proceeds from fresh issue will be utilised for repaying debts (Rs 50 crore), funding a working capital gap (Rs 135 crore), and investment in product development (Rs 40 crore), besides general corporate purposes.

The drone maker company is backed by Infosys, Qualcomm, Celesta, Florintree, EXIM Bank, Indusage Technology Venture Fund, and Infina Finance.

Motilal Oswal Investment Advisors acted as the sole book-running lead manager, while KFin Technologies was the registrar to the issue.