IdeaForge Technology Limited is coming up with an IPO that opens for subscription on 26th June, 2023. It is a prominent player in the Unmanned Aircraft Systems (UAS) manufacturing industry. In this article, we would provide ideaForge Technology IPO Review, its financial standing, valuation, analysis, and a conclusion on whether investing in this IPO is a good decision or not.
ideaForge Technology IPO Details
| IPO Opening Date | 26-Jun-23 |
| IPO Closing Date | 29-Jun-23 |
| IPO Listing Date | 07-Jul-23 |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹ 10 per equity share |
| IPO Price band | ₹ 638 to ₹ 672 per equity share |
| Lot Size | 22 Shares |
| Min Order Quantity | 22 Shares |
| Listing at | BSE and NSE |
| Total Issue Size | ₹. 567 Crores |
| Fresh issue | ₹. 240 Crores |
| OFS | ₹. 327 Crores |
| QIB shares offered | Not less than 75% of the offer |
| NII/HNI shares offered | Not more than 15% of the offer |
| Retail shares offered | Not more than 10% of the offer |
| Employee Discount | ₹32 Per Share |
IdeaForge Technology Limited RHP Link
About ideaForge Technology Limited
ideaForge Technology Limited, established in 2007, has emerged as a prominent player in the UAS manufacturing industry. With a diverse range of drones catering to mapping, security, surveillance, and mining area planning, the company has gained recognition for its cutting-edge technology and innovative solutions. It holds a significant market share in the Indian UAS industry, making it an attractive prospect for investors.
What are the financial highlights of ideaForge Technology?
Analyzing the financials of ideaForge Technology, the company has showcased impressive growth in recent years. Total assets have consistently increased, reaching INR 487.9 crores in FY23. Total revenue has witnessed a significant rise, amounting to INR 196.4 crores. Moreover, the company has successfully transitioned from losses to profitability, reporting a profit of INR 32.0 crores in FY23. These positive financial indicators reflect the company’s potential for sustained growth and profitability.
| Financial Year ending / Period ending (Amt in Crores) | ||||
| Particulars | FY20 | FY21 | FY22 | FY23 |
|---|---|---|---|---|
| Total Assets | 79.8 | 123.7 | 222.3 | 487.9 |
| Total Revenue | 16.3 | 36.3 | 161.5 | 196.4 |
| Profit After Tax | -13.5 | -14.6 | 44.0 | 32.0 |
| Profit % | -82.41% | -40.26% | 27.26% | 16.29% |
How is the valuation of ideaForge Technology Ltd IPO?
Ideaforge technology IPO price band is ₹ 638 to ₹ 672 per equity share
- If we consider last year FY22 EPS of ₹ 8.12, P/E ratio works out to be 83x.
- If we consider Last 3 Years Weighted EPS of ₹ 7.6, P/E ratio works out to be 88x.
- The listed peers like Data Patterns India Limited is trading at P/E 73x (Highest) and Astra Microwave Products are trading at P/E of 44x (Lowest) and industry average P/E is 58x.
- Hence, ideaForge IPO share Price at P/E of 83x to 88x is over-priced.
ideaForge Technology IPO Dates
| IPO Opening Date | Monday, 26 June 2023 |
| IPO Closing Date | Thursday, 29 June 2023 |
| Basis of Allotment | Tuesday, 4 July 2023 |
| Initiation of Refunds | Wednesday, 5 July 2023 |
| Credit of Shares to Demat | Thursday, 6 July 2023 |
| Listing Date | Friday, 7 July 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on Jun 29, 2023 |
What is ideaForge IPO GMP today?
Grey Market Premium (GMP) of IdeaForge Technology IPO is current between ₹ 450 to ₹ 500.
Positive Factors of investing in ideaForge Technology IPO
- Market Leadership: ideaForge Technology Limited holds a significant market share in the Indian UAS industry, positioning it favorably to capitalize on sector growth.
- Technological Excellence: The company’s cutting-edge drones, equipped with advanced features, have gained traction across multiple industries, making ideaForge a preferred choice for clients.
- Diverse Application Range: ideaForge’s UAS cater to various sectors, ensuring a diversified revenue stream and potential for expansion.
- Strong Financial Performance: With growing assets, increasing revenue, and a shift to profitability, ideaForge has demonstrated its ability to deliver favorable returns to investors.
What are the risk factors associated with the ideaForge IPO?
- Future Order Uncertainty: While ideaForge has experienced revenue growth and a strong order book, future orders may fluctuate, impacting the company’s revenue and growth prospects.
- Working Capital Gap: The company faces a significant working capital gap, and a failure to secure additional financing may adversely affect its operations and financial performance.
- Historical Losses: ideaForge incurred losses in FY20 and FY21
Is ideaForge Technology IPO good?
You might be wondering whether you should buy IdeaForge Tech IPO or not.
- The ideaForge Technology IPO presents an attractive investment opportunity given its strong financial performance, market leadership, and technological excellence.
- However, potential risks, such as future order uncertainty and historical losses, warrant careful consideration. Additionally, the relatively high valuation on the IPO price band should be taken into account.
- I would have been excited if such IPO is available at lower prices. High risk investors can invest in such IPOs for long term perspective.
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Amazing analysis and looks like a big bang opening soon. Great going !!!
Not able to understand such a high PE, high priced IPO commanding GMP of roughly Rs. 225-250 per share. Retail portion is also at 10% only. So chances of allotment are less.
It could be due to its niche / business portfolio