image of a ideaForge technology drone to indicate an upcoming IPO
The stock markets reached a record high recently and the Union Budget 2023 also emphasized significant investments in infrastructure and sectors like defense and green energy. This has led to optimism among both international and domestic investors. Amid this buzz, ideaForge Technology Limited, a drone manufacturing company, is coming out with an IPO on 26th June 2023.
ideaForge Technology Limited will open for subscription on 26th June 2023 and will close on 29th June 2023.
Here are all the essential details of ideaForge Technology Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of ideaForge Technology Limited are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 26th June 2023 |
| IPO Closing Date | 29th June 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face value of shares | Re. 10 per share |
| IPO Price Band | Rs. 638 – Rs. 672 per share |
| IPO Size | Rs. 567 crores |
| Offer For Sale | Rs. 327 crores |
| Fresh Issue | Rs. 240 crores |
The important dates for the ideaForge Technology Limited are highlighted below:
| Event | Date |
| Opening date | 26th June 2023 |
| Closing Date | 29th June 2023 |
| Allotment date | 4th July 2023 |
| Refund Date | 5th July 2023 |
| Share Credit Date | 6th July 2023 |
| Listing Date | 7th July 2023 |
Investors can subscribe to ideaForge Technology Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lotMaximum – 13 lots |
| Investment amount | Minimum – Rs. 14,036 – 14,784Maximum – Rs. 1,92,192 |
| Shares | Minimum – 22Maximum – 286 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investors | 10% |
| QIB (Qualified Institutional Buyers) | 75% |
| NII (Non-Institutional Bidders) | 15% |
The IPO will be a combination of a fresh issue and an Offer for Sale. The proceeds from the issue will be utilised in the following manner:
ideaForge Technology Limited is the biggest drone manufacturer in India and the 7 biggest drone manufacturers in the world offering their products in the dual category (civil and defence). The company was incorporated in 2007 and provides unmanned aircraft systems (UAS) for mapping, security, and surveillance. The company is backed by well-known names like Qualcomm, Infosys, and Florintree Capital Partners, co-established by former Blackstone executive Mathew Cyriac. ideaForge has the largest operational deployment of UAVs across India and is used extensively by the armed forces, central armed police forces, state police departments, disaster management forces, forest departments, and civil customers.
IdeaForge offers two primary software solutions, namely, BlueFire Live! and BlueFire Touch.
BlueFire Live! is a software that enables secure and real-time streaming of the video feed from UAVs (Unmanned Aerial Vehicles). It also provides the capability to remotely control payloads, allowing users to operate the drone’s equipment from a command center located elsewhere.
On the other hand, BlueFire Touch serves as a Ground Control Software (GCS). It is specifically designed to plan and execute mapping and surveillance missions. The software allows users to pre-plan missions based on specific operational areas and target locations using waypoint-based navigation.
ideaForge Technology Limited financials are given in the table below:
| Financial Year | Total Assets (Rs. in cr) | Operating Revenue (Rs. in cr) | Profit after tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 488 | 186 | 32 | Rs.8.55 | 9.85% |
| Mar-2022 | 222 | 159 | 44 | Rs.13.84 | 26.95% |
| Mar-2021 | 124 | 35 | (14) | Rs.(5.03) | (24.48)% |
(Source: RHP)
Some of the key strengths of ideaForge Technology Limited that investors can take note of are:
| Category | Details |
| Business model | The company has shown strong financial performance and has the first mover advantage in the drone industry being a pioneer not only in India but also abroad.ideaForge has significant product development capabilities powering our software and solutions and product differentiators and the benefit of in-house design to deliver capabilities.The company has a diversified product range and a robust technology stack as well as a track record of successful outcomes in critical use cases. |
| Qualitative merits | ideaForge has strong relationships with a diverse customer base The company also has a strong management team. |
Here are some of the risks that investors of ideaForge Technology Limited should know:
| Category | Details |
| Business viability and profitability | The company has complex products that are technologically advanced and can have unknown defects.The company could have difficulty in accessing strategic investments and acquisition opportunities in the future |
| Other concerns | The drone industry in India is highly fragmented and can face high competition from other large and small players. The company is in a highly regulated industry and requires meeting licensing requirements.Any discrepancy in following regulations can have an adverse impact on the company’s operational and financial performance.The company can have an adverse impact on the business and its operations due to political, economic, and regulatory factors. |
As of June 21st, 2023, the grey market premium for the shares of ideaForge Technology Limited IPO is Rs. 485 as per market observers. This means the shares are expected to list at a premium of Rs 485 per share over the listing cap price of Rs 672.
ideaForge Technology IPO may attract significant investor interest as it enjoys first-mover advantage apart from having strong financial performance. The company has a strong client base both in the defence sector and industries like agriculture, real estate, to name a few. This diverse customer base can empower it to achieve significant growth in the future. However, the drone industry is subject to a lot of regulations, stringent licensing requirements and any drawbacks that may come as a result of technological dependency.
It is essential for investors to conduct their own due diligence and evaluate the company’s financials, risks, and industry dynamics before making any investment decisions.
Investors can invest in this IPO through the Fisdom app.
The post-issue shareholding pattern for the company will be 30.19% of promoter holding and the balance 69.81% is expected to be held by the general public.
The listed peers of ideaForge Technology Limited Includes MTAR Technologies Ltd, Dat Patterns India Limited, and Astra Microwave Products Limited.
The market share of ideaForge Technology Limited was approximately 50% as of FY 2022.
For FY23, ideaForge reported positive revenues of Rs. 186 crores, which was a significant rise from Rs. 159 cr in the previous year.
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