ideaForge IPO to open on June 26, fixes price band of Rs 638-672 per share
The public issue comprises a fresh issue of Rs 240 crore and an offer for sale (OFS) of 4,869,712 shares.
Mumbai-based drone maker has fixed the price range of Rs 638 to Rs 672 per equity share for its maiden public offer. The company's IPO will open for subscription on Monday, June 26, 2023 and close on Thursday, June 29, 2023.
The public issue, which will have a face value of Rs 10 per share, comprises a fresh issue of Rs 240 crore and an offer for sale (OFS) of 4,869,712 shares. The offer also includes a reservation for subscription by eligible employees.
Investors can bid for a minimum of 22 equity shares, and in multiples of 22 equity shares thereafter.
The IPO plans to raise between Rs 550.69 crore and Rs 567.24 crore. With the proceeds, Rs 50 crore will be used to repay/pre-pay certain borrowings of the company, Rs 135 crore will go towards meeting the working capital gap, and Rs 40 crore for investment in product development and general corporate purposes.
This was followed by a pre-IPO placement of Rs 60 crore with institutional shareholders such as TataAIG General Insurance, 360ONE Special Opportunity Fund—Series 9 and 10, Motilal Oswal Mid-Cap Fund, and Think Investments PCC, a foreign institutional shareholder.
Founded in 2007, ideaForge has among the largest operational deployment of indigenous Unmanned Aerial Vehicles (UAVs) across India, with the company saying its drones take off every five minutes on average for surveillance and mapping.
It caters to customers with applications for surveillance, mapping and surveying, which includes the armed forces, central armed police forces, state police departments, disaster management forces, and forest departments along with other civil customers.
ideaForge had an order book of Rs 192.27 crore as on March 31, 2023. It plans to expand its offerings and operations to Bangladesh, Vietnam, and Nepal
The company's revenue from operations increased by 16.66% from Rs 159.44 crore in FY22 to Rs 186.01 crore in FY2023, while profit after tax stood at Rs 31.99 crore in FY2023.
It is backed by several marquee ventures and private equity investors, including Qualcomm Asia, and . Florintree Enterprises, backed by Mathew Cyriac, is the largest shareholder in the company, with approximately 11.85% stake.
Edited by Kanishk Singh