ideaForge Technology shares give up early gains; settle lower in debut trade

Shares of drone maker ideaForge Technology ended lower after a remarkable market debut in early trade on Friday amid the emergence of profit-taking at the counter.The stock began the trade at Rs 1,305.10, reflecting a steep jump of 94.21 per cent from the issue price of Rs 672 on the BSE.

Shares of drone maker ideaForge Technology ended lower after a remarkable market debut in early trade on Friday amid the emergence of profit-taking at the counter.

The stock began the trade at Rs 1,305.10, reflecting a steep jump of 94.21 per cent from the issue price of Rs 672 on the BSE. During the day, it climbed to a day's high of Rs 1,344. However, profit-taking at the counter pushed the stock down and it ended lower at Rs 1,295.50 apiece, down by 0.74 per cent from the issue price.

On the NSE, shares of the Mumbai-based company started the trade at Rs 1,300, witnessing a sharp uptick of 93.45 per cent. However, the stock closed at Rs 1,297, lower by 0.23 per cent.

The company commanded a market valuation of Rs 5,398.43 crore.

In the broader market, benchmark stock indices Sensex declined by 505 points at close while Nifty settled lower at the 19,330 points.

The initial public offering (IPO) of ideaForge Technology Ltd last week received a whopping 106.05 times subscription. The Rs 567.24-crore initial share sale had a price range of Rs 638-672 a share.

Founded in 2007, the company has the largest operational deployment of indigenous Unmanned Aerial Vehicles (UAVs) across India.

ideaForge has been backed by several marquee ventures and private equity investors, including Qualcomm Asia, Infosys and Celesta Capital.

The drone maker's customers include the armed forces, central armed police forces, state police departments, disaster management forces, forest departments and civil customers.

JM Financial and IIFL Securities were the managers to the offer.