IdeaForge concludes pre-IPO placement at Rs 2,500 Cr valuation

ideaForge Technology, one of the leading drone manufacturers in India, has concluded its pre-IPO placement at a valuation of approximately Rs 2,500 crore, banking sources told The Economic Times.

YourStory could not independently verify this report.

Institutional investors such as Tata AIG General Insurance, 360 One Asset Management, Motilal Oswal Mutual Fund, and Think Investments PCC, a foreign institutional investor, were part of the round as per media reports. The investors collectively contributed Rs 60 crore towards IdeaForge's growth, said the report.

Bankers said that ideaForge recently submitted its red herring prospectus, marking a significant step towards its upcoming initial public offering (IPO), scheduled to take place at the end of this month. The IPO is expected to have a total size of approximately Rs 650 crore, with a fresh fundraising component of Rs 300 crore and an offer for sale (OFS) component of around Rs 350 crore.

The report further highlighted the specifics of the OFS, where several shareholders, including promoter Ashish Bhat, will offload 180,000 shares, Amarpreet Singh will sell 8,362 shares, and Nambirajan Seshadri will offload 22,600 shares. Additionally, other selling shareholders participating in the OFS include A&E Investment, Agarwal Trademart, and Celesta Capital II Mauritius.

IdeaForge recently received clearance from SEBI for its draft red herring prospectus (DRHP), which was initially submitted in February, earlier this year.

Over the years, IdeaForge has garnered support from prominent ventures and private equity investors such as Qualcomm Asia, Infosys, and Celesta Capital. Florintree Enterprises, backed by Mathew Cyriac, holds the largest stake in the company, accounting for approximately 12%, as per the ET report.

The funds raised through the IPO will serve various purposes, including the repayment of existing debt, meeting operational capital requirements, and fueling investments in product development and general corporate goals.

IdeaForge counts itself as a market leader in India's unmanned aircraft systems (UAS) market, commanding a substantial market share of around 50% in fiscal year 2022.

The company's journey began in 2007 as an incubated project at IIT Bombay, making it one of the pioneering manufacturers of commercial drones in India. Since then it has emerged as a key player in the production of drones in the dual-use category, serving both civil and defense sectors. Last year, it also won the largest single VTOL Mini UAV defence contract globally for its SWITCH UAV.