Drone maker ideaForge Technology files DRHP with SEBI for IPO

Drone maker ideaForge Technology is looking to raise funds through an Initial Public Offer (IPO) and has filed preliminary papers with the Securities Exchange Board of India (SEBI), reports said.

According to the Draft Red Herring Prospectus (DRHP), the company’s IPO will include the issue of fresh equity shares worth Rs 300 crore and an offer for sale (OFS) of 48,69,712 equity shares by one of the promoters and existing shareholders.

Additionally, the company is also considering raising funds worth Rs 60 crore by issuing shares and if this placement is completed successfully then the size of the fresh issue will be reduced.

The shareholders participating in the OFS include:

·       Ashish Bhat

·        A&E Investment LLC

·        Agarwal Trademart

·        Celesta Capital II-B Mauritius

·        Export Import Bank of India

·        Indusage Technology Venture Fund I

·        QualComm Asia Pacific Pte Ltd

·        Society for Innovation and Entrepreneurship

Utilization of funds

The company proposes to utlize the funds raised from the IPO for various purposes. It will use Rs 50 crore towards paying off debts while around Rs 135 crore will be used to fund the working capital requirements of the company. An amount of Rs 40 crore will be used for research, development and other corporate needs.

About ideaForge Technology

The company was founded in 2007 and was incubated by several entities like the Society for Innovation and Entrepreneurship (SINE), IIM Ahmedabad, IIT Bombay and CIIE Initiatives. Since its formation, IdeaForge Technology has become one of the largest deployers of Unmanned Arial Vehicles (UAVs) in India.

IdeaForge Technology has a noticeable customer base which includes customers like the armed forces and state and central police departments. Disaster management, forest departments and other civil entities are customers of the company as well.

The company’s drones have come in handy in critical times like the 2015 Earthquake in Nepal and the terror incident in Pampore, in 2016, as per the DRHP. The company has also partnered with the railways in order to deploy surveillance drones which will help in surveying and monitoring to reduce theft.

Financials

ideaForge Technology has recently turned profitable in FY22 by posting a profit of Rs 44.01 crore. The company’s operating revenue has also seen a significant jump to Rs 159.44 crore in FY22 from Rs 34.72 crore in FY21.

The company’s revenue from operations for the six months ended September 30, 2022was Rs 139.55 crore, while its net profit during the period was Rs 45.21 crore.