IdeaForge, a manufacturer of drones, has raised Rs 255 crore ($31 million) from key investors. Four days after the company submitted its Red Herring Prospectus (RHP) to market regulator SEBI in order to raise Rs 570 crore from the public market, the development occurred.
According to the circular posted on the website of the Bombay Stock Exchange, the IPO committee of ideaForge, in consultation with JM Financial and IIFL Securities (BRLMs), has allotted 37,92,894 equity shares at an issue price of Rs 672 per share to raise Rs 254.88 crore.
Nomura Funds, TATA AIG, Ashoka India, Mirae Asset, HDFC, Motilal Oswal, 360 One, and Goldman Sachs were among the anchor investors who took part in the funding round. Twelve mutual funds, including Axis Mutual Fund, ICICI Prudential Mutual Fund, HDFC, Aditya Birla Sun Life, and others, participated in the round through a total of 18 schemes.
A few days ago, Motilal Oswal Mutual Fund, Think Investments PCC, 360 One Asset Management, and Tata AIG General Insurance contributed 60 crore rupees to the drone startup’s pre-IPO round. The company was valued at about Rs 2,560 crore (about $310 million) after the round.
In the past, ideaForge has raised about $40 million, including a $20 million Series B round in April 2022 that was led by Florintree Enterprise.
A total of 48,69,712 equity shares worth a total of about Rs 327 crore are being issued as part of the company’s IPO, which raises Rs 240 crore. With a price range of Rs 638–672, the initial public offering’s offer period will run from June 26 to June 29, 2023. The company will list on July 7, 2023, in accordance with the preliminary post-issue timeline.
The remaining funds will be used for other corporate purposes. Of the total fresh proceeds received from the public, Rs 135 crore will be used to close the working capital gap, followed by Rs 50 crore for debt repayment and Rs 40 crore for product development.
IdeaForge was established in 2007 with the goal of offering cutting-edge unmanned aerial vehicle (UAV) solutions. Along with associated hardware parts like payloads, batteries, chargers, and communication systems, it designs, produces, and sells UAVs. The business also provides software and embedded components that support applications tailored to particular industries.
The operational revenue of ideaForge increased by 16.7% in FY23 from FY22 to Rs 186 crore. According to Fintrackr’s analysis, the company’s profits decreased by 27.3% to Rs 32 crore in FY23 from Rs 44 crore in FY22. It’s important to note that the company lost Rs 14.62 crore in FY21.
The over 4X increase in ESOP expenses (booked under employee benefits) of Rs 27.7 crore during FY23 is responsible for the decline in profits.
