The 567-crore initial public offering (IPO) of ideaForge Technology opens to public today (Monday). The offer, which closes on June 29, comes at a price band of ₹638-672.

Discount to staff

The drone maker has reserved 75 per cent of the net offer for qualified institutional buyers, 15 per cent for high net-worth-individuals and the balance 10 per cent for retail investors.

The company has reserved 13,112 equity shares for its employees at a discount of ₹32 per share on the final issue price. Investors can bid for a minimum of 22 equity shares and in multiples of 22 shares thereafter.

Offer details

The IPO comprises fresh issuance of shares worth ₹240 crore and an offer-for-sale of 48.69 lakh equity shares by promoter and investors. Ashish Bhat, Amarpreet Singh, Nambirajan Seshadri, Naresh Malhotra, Sujata Vemuri, Sundararajan K Pandalgudi, A&E Investment LLC, Agarwal Trademart, Celesta Capital, Export Import Bank of India, Indusage Technology Venture Fund, Qualcomm Asia Pacific, and Society for Innovation and Entrepreneurship are the selling shareholders in the offer.

The issue size has been reduced to ₹240 crore from ₹300 crore as the company on June 15 raised ₹60 crore in a pre-IPO placement by issuing 8.92 lakh equity shares to institutional investors, including Tata AIG General Insurance, 360 ONE Special Opportunities Fund- Series 9 and 10, Motilal Oswal Midcap Fund, and Think Investments PCC.

Anchor investors

As part of IPO process, ideaForge has mopped up ₹254.88 crore from 31 anchor investors on Friday. The drone maker has finalised the allocation of 37.92 lakh equity shares to anchor investors at ₹672 per share, the higher end of the price band. Pinebridge Global Funds, Nomura Funds, Ashoka India Equity Investment Trust Plc, HSBC Mutual Fund, Goldman Sachs Funds, Carmignac Portfolio, Tata AIA General Insurance Company, ICICI Prudential Mutual Fund, Invesco India, Axis Mutual Fund, HDFC Mutual Fund, Nippon Life India, Aditya Birla Sun Life Trustee, Quant Mutual Fund and Max Life Insurance were some of the anchor investors who received the shares.

Utilisation of funds

The net proceeds from fresh issue will be utilised for repaying debts (₹50 crore), funding a working capital gap (₹135 crore), investment in product development (₹40 crore) and general corporate purposes.

About ideaForge

ideaForge is a market leader in the India’s unmanned aircraft systems (UAS) segment with a market share of about 50 per cent in FY22.

“Our UAVs are equipped with industry leading specifications and capabilities, comparable to those of other established global players in the UAV industry,” per the information available on the company’s website.

Also read: ideaForge Tech IPO: Should you subscribe?

The company manufactures UAS for surveillance, mapping and surveying. It has a manufacturing facility in Navi Mumbai, Maharashtra.

It caters to customers in defence as well as civil segments such as armed police forces, State police departments, disaster management forces, forest departments and private contractors building smart cities.

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