Ideaforge Technology Ltd IPO lists at 93.5% premium, ends slightly lower

Ideaforge Technology Ltd had a very strong listing on 07th July 2023, listing at a premium of 93.5%, but closing the day sharply marginally below the listing price but well above the IPO price. One can almost say that the stock had select a wrong day to list as the Nifty was down 166 points and the Sensex was down nearly 505 points on Friday. While the stock did show some bouts of volatility during the day after a very strong listing, it closed marginally below the listing price on the first day of trading on the NSE. However, the stock closed comfortably above the IPO price. With subscription of just about 106.06X  overall and QIB subscription at 125.81X, the listing was expected to be very strong, at the very minimum.

Here is the Ideaforge Technology Ltd listing story on 07th July 2023.

The IPO price was fixed at the upper end of the band at ₹672 which was anyways not surprising considering the very robust 106.06X overall subscription and the 125.81X QIB subscription for the IPO. In addition, the retail portion had got subscription of 85.20X. The price band for the IPO was ₹638 to ₹672. On 07th July 2023, the stock of Ideaforge Technology Ltd listed on the NSE at a price of ₹1300, a hefty premium of 93.5% on the IPO issue price of ₹672. On the BSE also, the stock listed at ₹1305.10, a premium 94.2% to the IPO price.

On the NSE, Ideaforge Technology Ltd closed on 07th July 2023 at a price of ₹1297. That is a first day closing premium of 93% on the issue price of ₹672 but a marginal discount of -0.23% on the listing price of ₹1,300. In fact, the listing price turned out to be the base on which the rally was built further, but the rally was given up in the second half and went below the listing price as the market pressure began to show on the stock too. On the BSE, the stock closed at ₹1295.50. That represents a first day closing premium of 92.8% over the issue price but a marginal discount of -0.74% below the listing price on the stock exchange. On both the exchanges, the stock listed substantially above the IPO issue price but closed Day-1 marginally below the IPO price. The stock did trend much higher during the day but the selling pressure in the market took its toll in the second half of the day and the stock price dropped below the listing price, although it did remain above the issue price.

On Day-1 of listing, Ideaforge Technology Ltd IPO touched a high of ₹1,343.95 on the NSE and a low of ₹1,260. The premium to listing price turned into a discount in the second half of the trading day. Actually, the listing price and the closing price of the day were the mid-points in price with the lows and the highs of the day far apart during the day. The fall was exacerbated by the fact that after a positive opening the markets fell vertically in the last two hours of trading. On Day-1 of listing, the Ideaforge Technology Ltd stock traded a total of 97.12 lakh shares on NSE amounting to value of ₹1,262.75 crore on the first day.  The order book during the day showed a lot of selling in the second half with the sell orders far exceeding the buy orders. However, despite the market pressures, the stock bounced and ended with net buyers of 21,053 shares at the close of trade on 07th July 2023.

Let us now turn to the performance of the stock on the BSE.

On Day-1 of listing, Ideaforge Technology Ltd touched a high of ₹1,344 on the BSE and a low of ₹1,257.80. The premium to listing price turned into a discount in the second half of the trading day. Actually, the listing price and the closing price of the day were the mid-points in price with the lows and the highs of the day far apart during the day. The fall was exacerbated by the fact that after a positive opening, the markets fell vertically in the last two hours of trading. On Day-1 of listing, the Ideaforge Technology Ltd stock traded a total of 6.50 lakh shares on BSE amounting to value of ₹84.51 crore on the first day.  The order book during the day showed a lot of selling in the second half with the sell orders far exceeding the buy orders. However, despite the market pressures, the stock bounced and ended with net buyers of shares at the close of trade on 07th July 2023.

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of selling pressure with the sell orders far exceeding the buy orders in the second half of trade. However, the stock did bounce back towards the close. That make it a buy on dips kind of stock through the day. However, this can also be attributed to the selling pressure on Friday. On the NSE, out of the total 97.12 lakh shares traded during the first day of trading, the deliverable quantity represented 39.32 lakh shares or a deliverable percentage of 40.49% on the NSE. That shows a lot of delivery trades as well as intraday trading interest also on the stock. Even on the BSE, out of the total 6.50 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 2.40 lakh shares representing total deliverable percentage of 36.90%. 

At the close of Day-1 of listing, Ideaforge Technology Ltd had a market capitalization of ₹5,398.43 crore with free-float market cap of ₹917.73 crore.