20-Jun-2023
2 mins read
IdeaForge Technology, India’s top drone manufacturer, recently finalised its pre-IPO placement, with a valuation of around Rs 2,500 crore. The round, which raised Rs 60 crore, included investors such as Tata AIG General Insurance and Motilal Oswal Mutual Fund. The company is set to go public later this month with an issue size of approximately Rs 650 crore.
Prominent shareholders will sell a portion of their shares during the IPO. IdeaForge has the approval of the Securities and Exchange Board of India for its draft red herring prospectus and is backed by major investors like Qualcomm Asia and Infosys. The funds from the new issue will be used to pay off debt, cover operating costs, and invest in product development. The company, founded at IIT Bombay in 2007, leads India’s unmanned aircraft systems market, with a 50% market share in fiscal 2022.
Established in 2007, ideaForge Technology Limited specialises in manufacturing Unmanned Aircraft Systems (UAS). The company develops drones for various applications, including mapping, security and surveillance. These drones are utilised in diverse sectors such as mining for planning and mapping purposes, construction and real estate for operational efficiency, and defence for Intelligence, Surveillance, and Reconnaissance (ISR) operations along borders.
ideaForge operates two main software: BlueFire Live!, which allows for secure, live streaming of the UAV video feed and also facilitates payload control from a distant command centre, and BlueFire Touch, a Ground Control Software (GCS) designed for planning and commanding both mapping and surveillance missions. This software enables pre-planned missions based on operational areas and target locations through waypoint-based navigation.
As a major player in India’s Unmanned Aircraft Systems market, ideaForge holds approximately 50% market share in fiscal 2022. The company stands out for having the largest operational deployment of indigenous UAVs across India, with an ideaForge-built drone taking off on average every five minutes for surveillance and mapping tasks.
In terms of global standing, ideaForge was ranked 7th in the dual-use category (civil and defence) drone manufacturers, as per the report by Drone Industry Insights in December 2022.
About ideaForge Technology Limited IPO
The initial public offering (IPO) of IdeaForge is all set to go live on June 26 and conclude on June 28. The amount that the company aims to generate is ₹567.24 Cr from this IPO. However, the amount includes a fresh issue of Rs 300 crores and an offer for the sale of up to 4,869,712 equity shares priced at Rs 10 each. The allocation for retail investors is 10%, qualified institutional buyers (QIB) is 75%, and high net worth individuals (HNI) is 15%.
The Objectives of ideaForge Technology Limited IPO
IdeaForge intends to allocate the net proceeds from the IPO towards several key objectives. These include repayment or prepayment of specific loans, fulfilling working capital requirements, investing in product development, and addressing other general corporate needs.
Financial Performance of ideaForge Technology Limited IPO (In Crore)
| FY 2020 | FY 2021 | FY 2022 | H1 FY2023 | |
| Revenue | 14.00 | 34.72 | 159.44 | 139.55 |
| Expenses | 29.76 | 50.84 | 111.27 | 83.95 |
| Net income | -13.45 | -14.63 | 44.01 | 45.21 |
| Margin (%) | -96.07 | -42.14 | 27.6 | 32.4 |
Important Details of ideaForge Technology Limited IPO
| IdeaForge IPO Dates | 26 – 28 June 2023 |
| IdeaForge IPO Price | 638 – ₹672 |
| Fresh issue | Rs 300 crore |
| Offer For Sale | 4,869,712 shares |
| Total IPO size | ₹567.24 Cr |
| Minimum bid (lot size) | 22 Shares |
| Face Value | Rs 10 per share |
| Retail Allocation | 10% |
| Listing On | BSE, NSE |
Important Dates for ideaForge Technology Limited IPO
| IPO Opening Date | 26-Jun-23 |
| IPO Closing Date | 28-Jun-23 |
| Finalisation of Basis of Allotment | 4-Jul-23 |
| Initiation of refunds | 5-Jul-23 |
| Transfer of shares to demat accounts | 6-Jul-23 |
| IdeaForge Listing Date | 7-Jul-23 |
Lead Managers
⦁ Jm Financial Limited
⦁ Iifl Securities Ltd
Promoters of ideaForge Technology Limited IPO
The promoters of the IPO are:
⦁ Srikanth Velamakanni, as the Chairman and Independent Director since 2022, leverages his technological expertise and management acumen gained from IIT Delhi and IIM Ahmedabad and his experience as the Co-Founder of Fractal Analytics.
⦁ Ankit Mehta, the CEO and a key promoter, drives business growth and global expansion, utilising his mechanical engineering background from IIT Bombay and extensive experience in the drone industry.
⦁ As Vice President and promoter, Rahul Singh spearheads product innovation and technology development, drawing on his long-standing experience in the drone sector.
How to Apply
Wait for the public issue to open for subscription, then click on Apply Now to apply for the ideaForge Technology Limited IPO with Bigul
How to Check Allotment Status
The registrar for ideaForge Technology Limited IPO is Link Intime India Private Ltd. To check your allotment status, please click on this link https://linkintime.co.in/
FAQs
1. What is the issue size of the ideaForge Technology Limited IPO?
The ideaForge IPO’s issue size is yet to be officially announced, but it will include a fresh issue of Rs 300 crores and an offer for the sale of up to 4,869,712 equity shares at Rs 10 each.
2. When is the IPO of ideaForge Technology Limited?
The ideaForge IPO is scheduled to open on June 26 and close on June 28, 2023.
3. How will the proceeds from the ideaForge IPO be used?
The net proceeds from the IPO will be used to repay or prepay certain loans, meet working capital requirements, invest in product development, and other general corporate purposes.
4. Who are the promoters of the ideaForge Technology Limited IPO?
The promoters of the IPO are Srikanth Velamakanni, the Chairman and Independent Director; Ankit Mehta, the CEO; and Rahul Singh, the Vice President.
5. How can I apply for the ideaForge Technology Limited IPO?
Once the public issue opens for subscription, you can apply for the ideaForge Technology Limited IPO by visiting this link: https://ipo.bonanzaonline.com/.
6. How can I check the allotment status of the ideaForge Technology Limited IPO?
The registrar for the ideaForge Technology Limited IPO is Link Intime India Private Ltd. You can check your allotment status by visiting this link: https://linkintime.co.in/.
7. Who are the lead managers for the ideaForge Technology Limited IPO?
The lead managers for the IPO are Jm Financial Limited and Iifl Securities Ltd.
8. What is the market share of ideaForge Technology Limited in the Indian UAS market?
IdeaForge holds approximately 50% market share in India’s Unmanned Aircraft Systems market in fiscal 2022.
9. What is the financial performance of ideaForge Technology Limited?
In FY 2022, ideaForge reported revenue of 159.44 crores and net income of 44.01 crores. The revenue and net income for the first half of FY 2023 were 139.55 crores and 45.21 crores, respectively.