Mumbai-based Drone maker ideaForge Technology Limited is the pioneer and the pre-eminent market leader in the Indian unmanned aircraft systems ("UAS") market, with a market share of approximately 50% in fiscal 2022 has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The company had filed preliminary IPO papers with Sebi on February 10, 2023.
The public issue with a face value of Rs 10 per equity share comprises of Rs 300 crore of fresh issue and an offer for sale of 4,869,712 equity shares. The offer also includes a reservation for a subscription by eligible employees.
The offer for sale comprising of up to 158,200 equity shares by Ashish Bhat, up to 8,362 equity shares by Amarpreet Singh, up to 22,600 equity shares by Nambirajan Seshadri, up to 22,600 equity shares by Naresh Malhotra, up to 203,400 equity shares by Sujata Vemuri, up to 51,980 equity shares by Sundararajan K Pandalgudia, up to 135,600 equity shares by A&E Investment LLC, up to 53,200 equity shares by Agarwal Trademart Private Limited, up to 1,106,722 equity shares by Celesta Capital II Mauritius, up to 131,758 equity shares by Celesta Capital II-B Mauritius, up to 202,044 equity shares by Export Import Bank of India, up to 1,695,000 equity shares by Indusage Technology Venture Fund I, up to 1,055,646 equity shares by Qualcomm Asia Pacific Pte. Ltd., up to 22,600 equity shares by Society for Innovation and Entrepreneurship.
The company, in consultation with the lead bankers to the issue, may consider an issue of specified securities aggregating up to Rs 60 crore. If such placement is completed, the fresh issue size will be reduced.
The proceeds from its fresh issuance to the tune of Rs. 50 crore will be utilised for repayment / prepayment of certain indebtedness availed by the Company, Rs 135 towards funding working capital requirements, Rs 40 crore for investment in product development and general corporate purposes.
Founded in 2007 and led by first generation entrepreneurs, ideaForge primarily caters to customers with applications for surveillance, mapping and surveying. Its customers include the armed forces, central armed police forces, state police departments, disaster management forces, forest departments besides other civil customers. It is one of the first few companies in India to enter the UAV market and ranks 7th globally in the dual use category i.e civil and defence as per the report published by Drone Industry Insights in Dec 2022.
The Mumbai-based company is backed by marquee investors including Infosys, Qualcomm, Celesta, Florintree, EXIM Bank, Indusage Technology Venture Fund and Infina Finance. Celesta currently holds 13.35% stake in the firm, Qualcomm holds 3.79%, while Exim Bank owns 1.09%.
JM Financial Limited and IIFL Securities Limited are the book running lead managers and Link Intime India Private Limited is the registrar for the issue.