ideaForge Soars in IPO, Delivering 94% Gain and Doubling Investor Wealth

Mumbai-based drone manufacturer, ideaForge, achieved a remarkable feat as its stock debuted on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) with a staggering 94.21% surge to Rs 1,305.10 per share on the BSE, while it opened at Rs 1,300 on the NSE. The company’s Initial Public Offering (IPO) received an overwhelming response from investors, with the subscription levels reaching a staggering 106 times at the close.

Despite the company’s expensive valuations, ideaForge’s market leadership in the Indian Unmanned Aircraft Systems (UAS) drone market, along with its unique position as the sole listed player, attracted strong demand across investor categories. The IPO was subscribed 85.1 times by retail individual investors (RIIs), 125.81 times by qualified institutional buyers, and 80.5 times by non-institutional investors (NIIs).

Ahead of the listing, IdeaForge shares commanded a grey market premium (GMP) of Rs 515 in the unlisted market, indicating the high investor anticipation for the company’s stock debut.

ideaForge Technology has firmly established itself as a leader in the Indian UAS market, capturing a substantial 50% market share in FY22. The company specializes in manufacturing unmanned aerial vehicles (UAVs) designed for mapping, security, and surveillance purposes. Its drones offer a wide range of applications, including mining area planning and mapping.

The Indian government has implemented various laws and policies to support the growth of the UAS sector, addressing both supply-side concerns through Production-Linked Incentives (PLI) and import bans, as well as demand-side issues through drone policies.

Experts believe that India has the potential to tap into approximately Rs 1.8 lakh crore of total domestic manufacturing opportunities in the UAS space. This presents a significant growth opportunity for IdeaForge and other players in the industry.

ideaForge enjoys strong backing from renowned entities such as Infosys, Qualcomm, Celesta, Florintree, EXIM Bank, Indusage Technology Venture Fund, and Infina Finance. Its revenue from operations witnessed a 16% year-on-year increase, amounting to Rs 186 crore in fiscal year 2023, while the company recorded a profit after tax of Rs 31.99 crore in the same period.

The company intends to utilize the fresh proceeds from its IPO issuance primarily for repayment of certain debts, funding working capital requirements amounting to Rs 135 crore, investment in product development worth Rs 40 crore, and for general corporate purposes. JM Financial and IIFL Securities served as the book-running lead managers for the IPO, and Link Intime India acted as the registrar for the issue.

ideaForge’s impressive listing performance, coupled with its strong market position and promising growth prospects, have set a positive tone for the company’s future in the burgeoning drone industry in India.