ideaForge IPO Opens June 26, Price Range Rs 638-672 per Share

Mumbai-based drone manufacturer ideaForge Technology has announced the price range for its upcoming initial public offering (IPO), setting it between Rs 638 and Rs 672 per share. The IPO is scheduled to commence on June 26, 2023, and will conclude on June 29, 2023.

The public offering comprises a fresh issue of Rs 240 crore and an offer for sale (OFS) of 4,869,712 shares. The face value of each share is Rs 10. Eligible employees will also have a reserved portion for the subscription. The minimum bid quantity is set at 22 equity shares, with multiples of 22 shares for subsequent bids.

The company aims to raise between Rs 550.69 crore and Rs 567.24 crore through the IPO.

The funds generated from the IPO will be allocated for various purposes. A sum of Rs 50 crore will be utilized to repay or prepay specific borrowings, while Rs 135 crore is designated to address the working capital gap.

Additionally, Rs 40 crore will be allocated towards product development and general corporate objectives. Prior to the IPO, the company successfully conducted a pre-IPO placement, raising Rs 60 crore from institutional shareholders, including Tata AIG General Insurance, 360ONE Special Opportunity Fund—Series 9 and 10, Motilal Oswal Mid-Cap Fund, and Think Investments PCC.

Established in 2007, ideaForge boasts one of the largest operational deployments of indigenous Unmanned Aerial Vehicles (UAVs) in India. The company's drones are regularly employed for surveillance and mapping purposes, with an average takeoff rate of one drone every five minutes.

Its customer base includes various entities such as the armed forces, central armed police forces, state police departments, disaster management forces, forest departments, and other civil customers. 

As of March 31, 2023, ideaForge's order book stood at Rs 192.27 crore. The company plans to expand its offerings and operations to Bangladesh, Vietnam, and Nepal.

In terms of financial performance, ideaForge witnessed a 16.66% growth in revenue from operations, increasing from Rs 159.44 crore in FY22 to Rs 186.01 crore in FY2023. The profit after tax for FY2023 amounted to Rs 31.99 crore.

The company has received significant backing from renowned ventures and private equity investors, including Qualcomm Asia, Infosys, and Celesta Capital. The largest shareholder in ideaForge is Florintree Enterprises, backed by Mathew Cyriac, holding an approximately 11.85% stake in the company.

With its IPO on the horizon, ideaForge aims to capitalize on the growing demand for drone technology in India and expand its market presence both domestically and internationally.

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