Drone startup ideaForge, which is preparing for an initial public offering (IPO), has successfully raised INR 255 crore (approximately $34 million) from anchor investors. The IPO committee of the drone company allocated 3.793 million equity shares at an issue price of INR 672 per share, resulting in the transaction size of INR 255 crore, according to a circular posted on the BSE website.
Both domestic and foreign investors participated in the funding round, including Nomura, Invesco, HSBC, ICICI Pru MF, Mirae Asset MF, HDFC MF, and Goldman Sachs. This follows ideaForge’s recent pre-IPO funding round, in which it raised INR 60 crore, with investments from institutional investors such as Tata AIG General Insurance, Motilal Oswal Mutual Fund, Think Investments PCC, and 360 One Asset Management.
The upcoming IPO of ideaForge has set a price band of INR 638-672 per share, with subscription opening on June 26, 2023, and closing on June 29, 2023. The IPO consists of a fresh issue of shares worth INR 240 crore and an offer for sale of 4.869 million equity shares by promoters and investors. The startup aims to raise approximately INR 567 crore from the upper price band.
Founded in 2007 by graduates of IIT Bombay, ideaForge claims to have completed over 350,000 flights with its drones. The company has filed 62 patents and has been granted 25 of them. As it prepares for the IPO, ideaForge plans to utilize the funds raised to repay debt and invest in product development.
The startup has announced its intention to expand into two product categories: tactical UAVs and middle-mile logistics drones. Additionally, ideaForge will focus on enhancing its current offerings and developing various software-as-a-service (SaaS) capabilities.
According to the startup’s red herring prospectus filed with the Securities and Exchange Board of India (SEBI), ideaForge reported a 27.3% decline in profit after tax (PAT) to INR 32 crore in the financial year 2022-23 (FY23), compared to INR 44 crore in the previous fiscal year. However, its operating revenue increased by 16.7% to INR 186 crore in FY23 from INR 159.4 crore in FY22.
