ideaForge Technology IPO Review – Date, Price, GMP and Valuations

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 Rs 10 per equity share
IPO Price band Rs 638 to Rs 672 per equity share
Lot Size 22 Shares
Min Order Quantity 22 Shares
Listing at BSE and NSE
Total Issue Size Rs. 567 Crores
    Fresh issue     Rs. 240 Crores
    OFS     Rs. 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 Rs.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 Rs 638 to Rs 672 per equity share

  • If we consider last year FY22 EPS of Rs 8.12, P/E ratio works out to be 83x.
  • If we consider Last 3 Years Weighted EPS of Rs 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 Rs 450 to Rs 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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Suresh KP

3 comments

  1. 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.

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