ideaForge Technology, a drone manufacturer, has filed papers with capital markets regulator Sebi to raise capital through an initial public offering. The drone designer and manufacturer claimed a market share of roughly 50% in Indian unmanned aircraft systems. The IPO includes new issues of Rs 300 crore in shares as well as an offer-for-sale (OFS) in which the promoters and shareholders sell 48.7 lakh shares with a face value of Rs 10 each. The proceeds from its new issuance of Rs 50 crore will be used to repay or prepay certain debts, Rs 135 crore will be used to fund working capital requirements, and Rs 40 crore will be used for product development and general corporate purposes.
The products and services offered by ideaForge Technology range from UAVs, batteries, and communication systems to drone-related software and solutions, catering to customers' applications for surveillance, mapping, and surveying. The company's initial public offering would be the first of its kind for a drone manufacturer. The book running lead managers for the Infosys and Qualcomm-backed company are JM Financial and IIFL Capital.
IdeaForge's revenue from operations increased at a CAGR of 237.48% over the last three years, and the company became profitable in Q2FY23, owing to sales to the Indian defence sector. According to a 1Lattice Report cited in the DRHP, the drone industry is worth $21 billion and growing at a 20% CAGR. India's drone industry aspires to become a major drone hub by 2030.
Drone startup DroneAcharya Aerial Innovations listed on the BSE SME platform in December 2022, commanding a 90% premium. DroneAcharya stock debuted on the BSE at Rs 102, compared to the public issue price of Rs 54. Shortly after, the stock rose 98% to Rs 107 per share. DroneAcharya's issue size was approximately 12.5% that of ideaForge's, with fresh issues totaling Rs 34 crore. The aerial innovations firm offers a high-end ecosystem of drone solutions, including training, surveys, data processing, and surveillance.