IdeaForge Technology Completes Pre-IPO Round at Rs 2,500 Crore Valuation

IdeaForge Technology, the largest drone manufacturer in India, has successfully concluded its pre-IPO placement, garnering a valuation of around Rs 2,500 crores.

The company recently raised Rs 60 crore in a round that saw the participation of institutional investors such as Tata AIG General Insurance, 360 One Asset Management, Motilal Oswal Mutual Fund, and Think Investments PCC, a foreign institutional investor.

Bankers revealed that IdeaForge submitted its red herring prospectus earlier this week, indicating its intention to launch its initial public offering at the end of this month. The upcoming IPO is expected to have a total issue size of approximately ₹650 crores, comprising a fresh fundraising component of Rs 300 crores and an offer for sale (OFS) component of around Rs 350 crores.

Under the OFS, various selling shareholders will offload their shares, including promoters Ashish Bhat, Amarpreet Singh, and Nambirajan Seshadri. Additionally, A&E Investment LLC, Agarwal Trademart, and Celesta Capital II Mauritius will also be selling their shares.

IdeaForge recently received clearance from the Securities and Exchange Board of India (SEBI) for its draft red herring prospectus (DRHP), which was submitted in February of this year. The company has garnered support from prominent ventures and private equity investors, including Qualcomm Asia, Infosys, and Celesta Capital. Notably, Florintree Enterprises, backed by Mathew Cyriac, holds the largest stake in the company, with approximately 12%.

The funds raised through the IPO will be utilized to pay off existing debt, fulfil operating capital requirements, and fuel investments in product development and other general corporate objectives. As a market leader in India's unmanned aircraft systems (UAS) market, IdeaForge commanded a market share of approximately 50% in the fiscal year 2022. Established in 2007 at IIT Bombay, the company has been at the forefront of commercial drone manufacturing in India and has established a strong presence in the dual-use category, serving both the civil and defense sectors.

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