IPO boom: Ideaforge issue subscribed 106x; Cyient DLM 67 times

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The recovery in the secondary market has spilled over into the primary market as well, with two companies’ initial public offerings that closed Friday seeing a strong response from all category investors.

The Rs 567 crore initial public offering (IPO) of drone manufacturer Ideaforge Technology saw massive subscription numbers over 100 times. The IPO price range was $638-672. The offering for the IPO was supposed to close on Thursday, but it was extended to Friday as exchanges changed the Packred holiday from Wednesday to Thursday.

The issue was 106.05 times oversubscribed on Friday, helped by huge investor participation.

The offer includes a reservation of 13,112 shares of stock for employees of the company who will receive these shares at a discount of $32 per share from the final issue price.

While part of Qatar Islamic Bank received bids 125.81 times, the share allocated to individual and wealthy investors was subscribed 85.16 times and 80.58 times, respectively. The employee bidding part was seen 96.65 times.

The IPO consists of a new issue of shares worth Rs 240 crore and an offer for sale of 48.69 lakh equity shares by the promoters and investors.

As part of the IPO process, ideaForge Technology cleared ₹254.88 crore from 31 anchor investors on Friday. Drone finished allocating 37.92 thousand shares of stock anchoring investors at ₹672 per share.

Cyient DLM IPO subscription

Similarly, Cyient DLM, the arm of the Hyderabad-based listed entity Cyient Ltd, saw strong participation from all classes of investors. The IPO of Rs 592 crore was oversubscribed 67.30 times. The price range of the offer is 250-265.

The share reserved for Qatar Islamic Bank was subscribed 90.44 times, while the category of individual investors and national institutions witnessed subscriptions 49.20 times and 45.05 times, respectively.

Cyient DLM has also allotted shares worth Rs 15 crore to its employees, who will get a discount of Rs 15 per share in the final issue price. The segment has been subscribed to 2.54 times.

Prior to the IPO, the company made a private placement of 40,000 shares aggregated for ₹108 crore.

Cyient DLM has mobilized ₹260 crore from anchor investors.

The money raised through the IPO will be used to fund additional capital requirements, capital expenditures, debt repayments, inorganic growth through acquisitions as well as general corporate purposes.