Ideaforge Technology IPO subscribed 106 times

Published on Jun 30, 2023 17:39

The initial public offer (IPO) of Ideaforge Technology received bids for 49,30,26,820 shares as against 46,48,870 shares on offer, according to stock exchange data at 17:36 IST on Friday (30 June 2023). The issue was subscribed 106.05 times.

The issue opened for bidding on Monday (26 June 2023) and it will close on Friday (30 June 2023). The price band of the IPO is fixed at Rs 638-672 per share. An investor can bid for a minimum of 22 equity shares and in multiples thereof.

The IPO comprises fresh issue of equity shares worth upto Rs 240 crore and an offer for sale of upto 48,69,712 equity shares by one of the promoter and other selling shareholders. IT major Infosys holds 16,14,314 shares or 4.25% equity, in the drone maker.

Out of the net proceeds Rs 50 crore will be used to repay/prepay borrowing of the company, Rs 135 crore will be used to meet funding working capital gap, Rs 40 crore towards investment in product development and balance towards general corporate purposes.

Ahead of the IPO, Ideaforge Technology on Friday, 23 June 2023, raised Rs 254.88 crore from anchor investors. The board allotted 37.92 lakh shares at Rs 672 each to 31 anchor investors.

Ideaforge Technology is the pioneer and the pre-eminent market leader in the Indian unmanned aircraft systems (UAVs) market, with a market share of 50% in FY 2022. It caters to domestic and international customers across defence and civil sectors, primarily for applications in surveillance, mapping and surveying.

The company also builds its own software stack required for flight safety, autopilot sub-system, battery, power and communication in its UAVs. It had the largest operational deployment of indigenous UAVs across India, with an Ideaforge manufactured drone taking off every five minutes on average for surveillance and mapping as of FY 2023.

The company reported a net profit of Rs 31.99 crore and net sales of Rs 186.01 crore for the twelve months ended 31 March 2023.