ideaForge IPO subscribed 106 times; Cyient DLM booked 67x on final day
The initial public offerings (IPOs) of drone maker ideaForge Technology and electronic manufacturing services company Cyient DLM have received overwhelming response from investors on the final day of bidding. The ₹567-crore IPO of ideaForge IPO was subscribed 106 times, while the public issue of Cyient DLM was booked over 67 times. Both issues received strong responses from qualified institutional buyers (QIBs) and retail individual investors.
IdeaForge, the market leader in the Indian unmanned aircraft systems (UAS) market, received bids for 49.27 crore shares as against 0.46 crore shares on the offer, till 4:30 pm, as per BSE data. The quota reserved for QIBs was booked 125.8 times, followed by retail individual investors (RIIs) (84.8 times), while the non-institutional investors’ (NII) portion was subscribed 80.57 times so far. The portion reserved for employees was booked 95.8% times.
In a similar trend, the IPO of Cyient DLM was subscribed 67.24 times as it received bids for 89.65 crore shares as against 1.33 crore shares on the offer. The public issue was subscribed 90.4 times in the QIB category, 45 times in the NII segment, while the retail portion was booked 49 times so far. The quota reserved for employees, however, received a tepid response and was booked merely by 2.44 times.
IdeaForge has set a price band for the offer at ₹638 to ₹672 per equity share with a lot size of 22 shares. The company aims to raise ₹567 crore at the upper end of the price band. The overall issue comprises fresh issuance of shares worth ₹240 crore, and an offer for sale of 48.69 lakh equity shares by selling shareholders. The company, in consultation with the BRLMs, had undertaken a pre-IPO placement worth ₹60 crore, which is why the size of the fresh issue has been reduced by ₹60 crore to up to ₹240 crore. Ahead of the IPO, the company raised around ₹254.88 crore from anchor investors at ₹672 per equity share.
The four-day IPO of the drone manufacturing company opened for subscription on June 26 and was extended by a day to June 30 as the stock market was closed on June 29 for a public holiday. The shares of the company are set to be listed on the exchanges on July 7, 2023.
The company intended to deploy the net proceeds from the issue to repay or prepay certain indebtedness, fund the working capital gap, invest in product development, and general corporate purposes. As of March 31, 2022, ideaForge Technology had a total assets of ₹487.9 crore. The consolidated financials show it recorded a profit worth ₹40.7 crore as of March 31, 2023, and its income stood at ₹196.4 crore.
On the other hand, Cyient DLM, a subsidiary of IT services firm Cyient, launched its three-day IPO on June 27. The company has cut issue size to ₹592 crore, as against ₹740 crore earlier as it has undertaken a private placement of 4,075,471 equity shares at a price of ₹265 apiece, amounting to ₹108 crore.
The issue was completely a fresh issue of 2,23,39,623 equity shares, aggregating up to ₹592 crore. As per the offer document filed with SEBI, Cyient DLM has reserved up to 75% of the issue for qualified institutional buyers (QIBs), 15% for high net-worth individuals (HNIs), and 10% for retail investors. Investors can apply for a minimum of 56 equity shares and its multiples thereafter.
The company will use the capital raised from the IPO for funding incremental working capital requirements, capital expenditure, as well as repayment or prepayment, in part or full, of certain of the borrowings. A part of the fund will be also used to achieve inorganic growth through acquisitions and meet general corporate purposes. Shares of Cyient DLM are expected to be listed on domestic exchanges, BSE and NSE, on July 10.