Feb 26, 2023
Drone maker ideaForge files for IPO: A side-by-side look vs DroneAcharya’s bumper IPO; issue size, more
Drone maker ideaForge Technology filed papers with capital markets regulator Sebi to raise capital via an initial public offering. The drone designer and manufacturer boasted of approximately 50% market share in Indian unmanned aircraft systems. The IPO comprises fresh issues of shares worth Rs 300 crore as well as an offer-for-sale (OFS), with the promoters and shareholders offloading 48.7 lakh shares with a face value of Rs 10 each. The proceeds from its fresh issuance to the tune of Rs 50 crore will be utilized for repayment / prepayment of certain debts, Rs 135 crore will be towards funding working capital requirements and Rs 40 crore for investment in product development and general corporate purposes.
ideaForge Technology’s products and services range from UAVs, batteries, communication systems to drone-related software and solutions, catering to customers applications for surveillance, mapping and surveying. The firm’s debut on the bourses would be the first-ever listing of a drone manufacturing company. JM Financial and IIFL Capital are the book running lead managers for the Infosys and Qualcomm-backed company.
Drone startup DroneAcharya Aerial Innovations listed on BSE SME platform in December 2022, listing at a bumper premium of 90%. DroneAcharya stock made its market debut at Rs 102 on the BSE, as compared to the public issue price of Rs 54. The scrip shortly thereafter rose to Rs 107 per share, up 98%. DroneAcharya’s issue size was approximately 12.5% of ideaForge’s issue size, clocking in at fresh issues of Rs 34 crore. The aerial innovations company provides a high-end ecosystem of drone solutions, such as training, surveys, data processing and surveillance.
FY22 Revenue
DroneAcharya: Rs 3.59 croreideaForge Technologies: Rs 1,59.43 crore
FY22 Profit
DroneAcharya: Rs 40.65 lakhsideaForge Technologies: Rs 44 crore
Fresh Issue
DroneAcharya: Rs 34 croreideaForge Technologies: Rs 300 crore
OFS
DroneAcharya: NillideaForge Technologies: 4,869,712 shares
Board
DroneAcharya: SME BoardideaForge Technologies: Main Board
However, in its DRHP, ideaForge did not mention DroneAcharya among its listed peers. “There are no listed companies that exclusively undertake the manufacturing of drones. Hence, basis factors such as the scale of the business, exposure to the defence sector, manufacturing of electronics products, a proxy set of listed peers of MTAR Technologies Limited, Data Patterns (India) Limited and Astra Microwave Products Limited have been identified for our Company,” stated the Mumbai-based drone manufacturer.
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