ideaForge IPO: How Infosys may benefit from drone maker company’s public issue?
ideaForge IPO: The initial public offering (IPO) of ideaForge technology Limited opened today and the public issue worth ₹567 crore received strong response by retail and other category investors. As per the ideaForge IPO subscription status, by 12:56 PM on day one of bidding, ideaForge IPO has been subscribed 1.28 times whereas its retail portion has been subscribed 5.11 times. So, on the basis of such strong response by investors, ideaForge Technology Limited is expected to get benefit from its public offer. However, it would be interesting for positional shareholders of Infosys that success of ideaForge IPO may trickle down to them in medium to long term.
Infosys stake in ideaForge Technology
As per the Red Herring Prospectus of ideaForge Technology IPO, Infosys is one of the major investors in this drone maker company. As per the information available on page number 95 of the ideaForge IPO RHP, Infosys Ltd holds 1,647,314 ideaForge Technology shares, which is 4.25 per cent of total paid up capital of the defence drone maker company.
On how Infosys may benefit from ideaForge IPO, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Infosys Ltd holds 4.25 per cent stake in this drone maker company. ideaForge aims to raise ₹567 crore from its initial offer out of which ₹240 would come from issuance of fresh shares while rest is reserved for the offer for sale (OFS) route. So, ₹240 crore of the net proceeds would go to the balance sheet of the company, which they are expected to use for debt repayment, funding of working capital requirements of the company and general corporate requirements of the company. So, the IPO is expected to benefit ideaForge technology Limited in medium to long term.”
Profitmart Securities expert went on to add that drone theme is working in current Indian stock market and hence the IPO is expected to deliver stellar return to its investors including pre-IPO investors. So, Infosys being a pre-IPO investor is expected to reap medium to long term benefit from this public issue. However, it is expected to get instant benefit on its investment after the ideaForge IPO listing as the in vestment must be below the public issue price band.
ideaForge IPO subscription status
ideaForge IPO get off to a flying start today as the retail portion of the public offer got fully subscribed within half an hour of the subscription opening. As per the ideaForge IPO subscription status, by 12:56 PM on day one of bidding, ideaForge IPO has been subscribed 1.28 times whereas its retail portion has been subscribed 5.11 times. In NII category, the public issue has been subscribed 1.33 times.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 26 Jun 2023, 01:47 PM IST
