SUMMARY
After debuting on the bourses at a premium of 94% on Friday (July 7), shares of ideaForge slumped 9.6% to INR 1,171.1 during the early trading hours on Monday
At 2.40 PM IST, the drone startup’s shares were trading at INR 1,189, down 8.2%, due to profit booking
Among other new-age tech stocks, DroneAcharya, Paytm, Fino Payments Bank, PB Fintech, CarTrade, Nykaa, RateGain, and IndiaMart InterMESH were also trading lower on Monday
Shares of ideaforge
slumped 9.6% to INR 1,171.1 during the early trading hours on the BSE on Monday (July 10) after Friday’s mega listing.
At 2.40 PM IST, the drone startup’s shares were trading at INR 1,189, down 8.2%.
Shares of ideaForge listed at a premium of over 94% to its issue price of INR 638-INR 672 at INR 1,305.10 apiece on the BSE. On the NSE, the shares listed at INR 1,300, a premium of 93.45%.
Prashanth Tapse, senior VP research analyst at Mehta Equities, said that the “fantastic” listing was in line with expectations. However, the company’s valuation was overstretched after the listing, leading to profit booking, he said.
Tapse also said that while the outlook for the company remains positive, only high-risk investors should hold on to the shares for the long term.
With its listing, ideaForge became the first new-age tech startup to go for an IPO in 2023. Before it, DroneAcharya was the last new-age tech startup to go public in December last year.
Meanwhile, among other new-age tech stocks, DroneAcharya, Paytm, Fino Payments Bank, PB Fintech, CarTrade Technologies, Nykaa, RateGain, and IndiaMart InterMESH were also down during the intraday trading session today.
Paytm shares were down 2.6% at INR 828.5, while IndiaMart fell 4.5% to INR 2,620.8 on the BSE.
The overall domestic equity market is also likely to now consolidate after the bull run of the last two weeks, as per analysts.
“The latest US non-farm jobs data (2.09 lakh jobs created in June) shows that the labour market is cooling off. But since core inflation remains sticky around 5%, the Fed is likely to raise rates by 25 basis points on July 26… This macro construct will restrain the ongoing rally in the mother market, and this will have its impact on the Indian market, too,” said Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services.
