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Drone maker ideaForge‘s initial public offering (IPO) was oversubscribed by 3.69 times on Day 1, as per data available on the Bombay Stock Exchange, with the retail portion getting fully subscribed in less than an hour of opening.

Expected to conclude on June 29, the drone manufacturer has set the price band for the IdeaForge IPO at Rs 638 to Rs 672 per equity share.

The non-institutional investors’ (NII) portion was subscribed 5.13 times, while barely any bids were received from qualified institutional buyers—34,760 bids against a total of 25,28,596 shares on offer.

At the end of the trading day, the retail portion was oversubscribed by 12.48 times. Meanwhile, shares reserved for employees were oversubscribed by 8.47 times.

As per reports, the company’s shares are commanding Rs 525-530 in the unlisted market.

Earlier this month, the startup concluded its pre-IPO placement at a valuation of approximately Rs 2,500 crore, banking sources told The Economic Times.

The IPO is expected to have a total size of approximately Rs 650 crore, with a fresh fundraising component of Rs 300 crore and an offer for sale (OFS) component of around Rs 350 crore.

The capital raised will serve various purposes, including the repayment of existing debt, meeting operational capital requirements, and fueling investments in product development and general corporate goals.

IdeaForge counts itself as a market leader in India’s unmanned aircraft systems (UAS) market, commanding a substantial market share of around 50% in FY22.

The company’s journey began in 2007 as an incubated project at IIT Bombay. Founded by Ankit Mehta, Rahul Singh, Vipul Joshi and Ashish Bhat, it has emerged as a key player in the production of drones in the dual-use category, serving both civil and defence sectors.

Last year, it also won the largest single VTOL Mini UAV defence contract globally for its SWITCH UAV.