ideaForge Tech, renowned for its drone showcased in the movie ‘3 Idiots,’ has launched its initial public offering (IPO) today.
The IPO includes new share issuances worth Rs 567 crore, as well as shares available for sale through the Offer for Sale (OFS) window. Prior to the IPO, the company secured Rs 254.88 crore from 23 anchor investors.
While the IPO has opened for public subscription, the gray market indicates strong demand, with the shares trading at a premium of around 73% at Rs 490.
However, experts advise considering the company’s fundamentals and financials for investment decisions rather than relying solely on signals from the gray market.
Details of the ideaForge Tech IPO
The ideaForge Tech IPO will remain open for subscription until June 29. The IPO includes the issuance of new equity shares worth Rs 240 crore.
Additionally, 48,69,712 shares with a face value of Rs 10 will be available for sale through the OFS window.
The price band for the issue is set at Rs 638-672 per share, with a lot size of 22 shares. Employees of the company are eligible for a discount of Rs 32, and 13,112 shares have been reserved for them.
Allocation percentages for different investor categories are as follows: 75% for Qualified Institutional Investors (QIB), 15% for Non-Institutional Investors (NII), and 10% for retail investors.
Allotment of shares is expected to be finalized on July 4, with listing on the BSE and NSE scheduled for July 7.
The funds raised through the issuance of new shares will be utilized for debt repayment, working capital requirements, product development, and general corporate purposes. Link Intime India Private Limited is the Registrar to the Issue for the IPO.
Overview of ideaForge Tech
ideaForge Tech specializes in the manufacturing of Unmanned Aircraft Systems (UAS) used in mapping, security, and surveillance applications.
It currently holds the position of being the largest drone company in India, capturing 50% of the market share in FY2022.
As of December 2022, according to the Drone Industry Insights report, ideaForge Tech is the seventh-largest company globally in the civil and defense drone industry.
Examining the company’s financial performance, it has experienced fluctuations in profits over the past four financial years.
In FY2020, it reported a net loss of Rs 13.45 crore, which increased to Rs 14.63 crore in the subsequent year.
However, the company rebounded, achieving a net profit of Rs 44.01 crore in FY2022. Unfortunately, profits declined again in the following financial year, reaching Rs 31.99 crore.
