Ideaforge Technology IPO

With a market share of almost 50% in Fiscal 2022, Ideaforge Technology Limited is the innovator and undisputed industry leader in the Indian unmanned aircraft systems market (Source: 1Lattice Report). Ideaforge Technology IPO will hit the stock market in September 2023.

About Ideaforge Technology

During the nine months that concluded on December 31, 2022, Ideaforge had the highest operational deployment of indigenous UAVs across India, with a drone made by the company taking flight once every five minutes on average for surveillance and mapping.

As of December 31, 2022, their customers have flown more than 300,000 times with their UAVs. According to a survey released by Drone Industry Insights in December 2022, they were rated 7th globally among drone manufacturers for drones with dual purposes (civil & defense).

Over the past three fiscal years, their income from operations has increased at a CAGR of 237.48%, and in fiscal 2022, their return on invested capital was 49.63%. They have three national distributors & roughly 100 channel partners.

Product

Their UAVs are outfitted with industry-leading features and capabilities that are on par with those of other well-known international UAV players.

They think that their capacity to create, build, and deliver customer-centric offerings (such as hardware, software, and solutions) as well as their vertically integrated operations have all contributed to their success throughout the years.

With a handle on performance, dependability, and autonomy, they are able to design, develop, engineer, and manufacture our UAVs in-house.

Their UAV platforms are designed with a “mission first” philosophy, which means that they want to produce UAVs that satisfy their customers’ needs and that, in their opinion, can reliably withstand many flights and be handled autonomously without the need for specialized knowledge or training.

Business Model

Their product portfolio, which is among the best in the business and is intended for both civil and defense purposes, is dual use.

They offer a wide variety of products that are differentiated depending on features like weight class, endurance class, take-off altitude range (up to 6,000 meters), communication range (roughly between 2–15 km), payload kinds, etc.

They fully integrate their payloads, communication system, and packaging in addition to the UAVs. Additionally, they create the software stack that their UAVs need for communication, power, battery, and the autopilot sub-system.

They contend that by integrating sophisticated technologies and enhancing performance, reliability, and autonomy, they are able to not only keep out new competitors but also set themselves apart from the competition.

Ideaforge Technology IPO

Ideaforge Technology Limited, headquartered in Gujarat has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 300 crore and 4,869,712 equity shares on 10 February  2023.

The offer includes a fresh issue of 300 Crore and there is offer for sale (OFS) of 4,869,712 equity shares by the promoters mentioned in the DRHP. They are looking for Pre-IPO placement of 60 crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-22	31-Mar-22	31-Mar-21	31-Mar-20
Total Assets	392.15	222.33	123.74	79.79
Total Revenue	143.44	161.45	36.34	16.32
Profit After Tax	45.21	44.01	(14.63)	(13.45)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	(4.68)	(4.68)	3
Financial Year 2021	(5.03)	(5.03)	2
Financial Year 2022	13.84	2.77	1
Weighted Average	4.46	4.11
30 Sep 2022	12.49	11.60

Objects of the Issue

• Repayment/prepayment of debt.
• General corporate objectives and organic growth.

Basis of the offer

Ideaforge Technology limited feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:

• With first-mover advantage, the pioneer and undisputed market leader in the Indian UAS sector.
• A broad range of products with a solid technological foundation and a track record of success in key use cases.
• Strong connections with a wide range of customers.
• Their software, solutions, and differentiators for products are powered by significant product development skills.
• Design to delivery expertise in-house.
• Outstanding managerial skills and a track record of generating strong financial results.

Ideaforge Technology Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	MTR Technologies Limited	82.73
2	2	DataPatterns India Limited	66.32
3	2	Astra Microwave Products	59.02

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2022, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on January 20, 2023 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2022.

Ideaforge Technology IPO Details

IPO Opening Date	September 2023
IPO Closing Date	September 2023
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	300 crore and 4,869,712 equity shares
Fresh Issue	300 crore
Offer for Sale	4,869,712 equity shares

Ideaforge Technology IPO Date

Ideaforge Technology Limited IPO opening date is September 2023, and the closing date is September 2023. The Ideaforge Technology issue may list in September 2023.

IPO Opening Date	September 2023
IPO Closing Date	September 2023
Basis of Allotment Date	September 2023
Initiation of Refunds	September 2023
Credit of Shares to Demat Account	September 2023
IPO Listing Date	September 2023

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Ideaforge Technology IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Ideaforge Technology IPO.

Ideaforge Technology IPO GMP

Ideaforge Technology Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Ideaforge Technology Limited IPO Review

Ideaforge Technology Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Ideaforge Technology IPO is good or bad.

Ideaforge Technology IPO Risk

• They work in a highly regulated and dynamic sector of the economy. Their business, financial condition, cash flows, and operational outcomes will suffer if they don’t adhere to the appropriate laws and regulations set forth by the Government of India and the pertinent statutory or regulatory organizations.
• They hold a license to manufacture unmanned aerial vehicles under the Industries (Development and Regulation) Act of 1951, and any violation of or failure to comply with the terms and conditions of that license could result in its cancellation, which would have a materially negative effect on their operations and business.
• Sales to the Indian government, notably to the federal and state agencies, are a major source of income for them.

Other Threats

1. Order volume from the past, order volume from the current order book, and order volume growth rate may not be an accurate predictor of order volume from the future.
2. They may not be able to lessen their reliance on such imports because they are strongly dependent on international vendors for the supply of components.
3. They create unmanned aerial vehicles using cutting-edge technology through design, development, engineering, & manufacturing. Since they must constantly develop new products to meet consumer demand, they risk having their current products become obsolete and suffering negative effects to their operations if they are unable to recognize changing market trends, technological advancements, and consumer preferences.
4. Their goods may contain unidentified flaws or mistakes since they are sophisticated & complex.

Network

One of India’s greatest support networks for UAVs exists there (Source: 1Lattice Report). Customers can also get after-sale maintenance services from them in addition to the warranty services they offer with their UAVs.

In the Indian UAV business, their support care plan, ideaForge Care plan, is one of the first subscription-based support packages of its sort (Source: 1Lattice Report).

Customers can choose from a variety of support plans, including 24 hour assistance and replacement UAV choices, through their support care program, ideaForge Care.

They offer their customers the fundamental training necessary for operating the UAVs and for acquainting them with the operation of their UAVs, despite the fact that their UAVs are mission-oriented and require little training.

Ideaforge Technology IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Ideaforge Technology IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Ideaforge Technology Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
September 2023	1
September 2023	2
September 2023	3

Ideaforge Technology Limited Management

Ankit Mehta, Rahul Singh, and Ashish Bhat, who are their Promoters, together with Vipul Joshi, their Chief Financial Officer, who later joined their company, formed it in 2007. While attending IIT Bombay, its Promoters created their first quadrotor UAV in 2004.

Although the company’s Promoters are first-generation business owners, it has over the years received investments from a number of parties, including Infosys Limited, Qualcomm Asia Pacific Pte. Ltd., Celesta Capital II Mauritius, Celesta Capital II-B Mauritius, Florintree Enterprise LLP, Export Import Bank of India, and Infina Finance Private Limited.

These parties have also given them helpful management and organizational inputs. The Society for Innovation and Entrepreneurship at IIT Bombay and CIIE Initiatives at IIM Ahmedabad initially nurtured their business.

Ideaforge Technology Limited‘ Promoters

• Ankit Mehta
• Rahul Singh
• Ashish Bhat

Principal Shareholders’s Holding

Pre Issue Share Holding	50.70%
Post Issue Share Holding

Ideaforge Technology Limited Prospectus