IdeaForge Tech IPO: IdeaForge Technology, a drone manufacturer based in Mumbai, has registered for an initial public offering with market regulator Sebi with a goal of raising roughly Rs750. Through secondary and primary share sales, about 25% of the company will be made available. The additional issue of Rs 300 crore and the offer to sell 4.87 lakh equity shares make up the public offering, which has a face value of Rs 10 per equity share. The offer also permits qualified employees to reserve a subscription.
IdeaForge Technology Sets New Milestone as First Drone Manufacturer to List on Domestic Bourses
The company would be the first drone manufacturer to ever list on the main board of the domestic bourses. Investors who will take part in the OFS include venture capital firms and promoter group entities. Presently, promoters and investors jointly own around 70% of IdeaForge Technology. Customers who need apps for surveillance, mapping, and surveying are IdeaForge’s main target market. Along with other civil clients, it has as clients the military forces, the central armed police, state police agencies, disaster management forces, and forest departments. According to a report by Drone Industry Insights published in December 2022, IdeaForge is one of the first few companies in India to enter the UAV market and ranks 7th globally in the dual use category, i.e. civil and defence. It is backed by companies like Qualcomm, Infosys, and Florintree Capital Partners, which was co-founded by former Blackstone executive Mathew Cyriac. The amount of the offer that can be allocated to qualified institutional buyers must be at least 75%, the amount that can be allocated to non-institutional investors must not exceed 15%, and the amount that can be allocated to retail individual bidders must not exceed 10%.
Strategic Utilization of Funds for Debt Repayment, Working Capital Needs, and Innovation
The proceeds from its new offering would be used for a variety of corporate objectives, including the repayment or payback of certain debt that the company has borrowed, paying working capital needs with $135 million, investing in product development with $40 million, and general corporate purposes with the remaining Rs 50 crore. The company may think about issuing selected securities totaling up to Rs 60 crore in collaboration with the lead bankers to the issue. If such a placement is successful, the size of the new issue will be decreased. Ankit Mehta, Ashish Bhat, Rahul Singh, Vipul Joshi, and Amardeep Singh, alumni of IIT Bombay, founded ideaForge in 2007. The company states to have 15 years of R&D experience and more than 20 patents. The Society for Innovation and Entrepreneurship (“SINE”), IIT Bombay, and CIIE Initiatives, IIM Ahmedabad, respectively, served as the company’s initial incubators.
IdeaForge’s Impressive Patent Portfolio and Extensive Client Usage Highlight Technological Leadership
It has submitted 62 patent applications, of which 28 have done so in India and 34 elsewhere. As stated in the DRHP, as of December 31, 2022, its client had flown over 300,000 times using its UAVs. Up to 158,200 equity shares may be offered for sale by Ashish Bhat, up to 8,362 equity shares may be offered by Amarpreet Singh, up to 22,600 equity shares may be offered for sale by Nambirajan Seshadri, up to 22,600 equity shares may be offered for sale by Naresh Malhotra, up to 203,400 equity shares may be offered for sale by Sujata Vemuri, up to 51,980 equity shares may be offered, , up to 1,055,646 equity shares by Qualcomm Asia Pacific Pte. Ltd., up to 22,600 equity shares by Society for Innovation and Entrepreneurship. The Mumbai-based company had the largest operational deployment of domestic UAVs in India, with its drones typically taking off for surveillance and mapping every five minutes. The drone manufacturer’s operational revenue has grown over the last three fiscal years at a CAGR of 237.48%. The company made a profit of Rs 44.01 Cr in FY22 after posting a loss in FY21. Revenue from operations for the six months ended September 30, 2022, was Rs 139.55 crore, while profit after taxes was Rs 45.21 crore. The value of the global drone market is predicted to reach $21.1 billion (Rs 1.74 trillion), according to 1Lattice Report, in 2022. With a CAGR of 19%, the sector experienced strong growth between 2018 and 2022. With a CAGR of 20%, it is anticipated to expand even faster and reach a projected US$ 51.4 billion (Rs 4.25 trillion) in 2027.
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