IdeaForge Technology IPO
IdeaForge Technologies, a top company in the design and production of world-class drones for mapping, security, and surveillance, is making waves in the market with its upcoming IPO. With a strong presence in the B2B space, catering to the Aerospace, Maritime, and Defense Tech market segments, IdeaForge has positioned itself as a key player in the industry.
JM Financial and IIFL Securities will be the book-running lead managers for the ideaForge Technology IPO, and Link Intime India will be the IPO’s registrar.
The company’s exceptional financial performance, including impressive revenue growth and profitability, has garnered attention from traders and industry experts alike.
In this article, we will delve into IdeaForge’s journey, its notable achievements and explore the exciting prospects of its IPO.
About IdeaForge Technology
Established in 2007 by Ankit Mehta, Rahul Singh, and Ashish Bhat, Ideaforge Technology has established itself as a leading player in the Indian unmanned aircraft segment, holding an impressive 50% market share in the fiscal year 2022. Moreover, it ranks as the 7th largest drone manufacturer globally in the dual-use category encompassing civil and defence applications, as per a 1 Lattice Report.
The company has achieved a significant milestone by successfully completing 300,000 flights through the largest operational deployment of indigenous Unmanned Aerial Vehicles (UAVs) in India by December 31, 2022.
Ideaforge specializes in the production of surveillance and mapping drones and is credited as the first company to develop vertical take-off and landing capabilities internally. Through its vertically integrated business model, the company invests in, designs, and delivers customer-centric UAV products.
The company has been at the forefront of introducing technological and design innovations, exemplified by the demonstration of its 5G-enabled UAVs at the Indian Mobile Congress in 2018. With its exclusive autopilot sub-systems and ground control software, Ideaforge distinguishes itself among original equipment manufacturers (OEMs).
Ideaforge IPO Subscription Details
The ideaForge Technology IPO includes a fresh issue amounting to ₹240 Crores. Here are the subscription details of Ideaforge IPO:
| Lot Size | 22 |
| IPO Size | Rs. 567 Cr |
| IPO Price Range | Rs. 638 to Rs. 672 |
| Min Investment | Rs. 14036 |
| Face Value | Rs. 10 Per Equity Share |
| Listing Exchange | NSE, BSE |
IdeaForge IPO Opening Date
Here is a breakdown of the key dates and processes related to the IdeaForge IPO:
- IPO Opening Date: June 26, 2023 – On this date, the IdeaForge IPO subscription process begins, and investors can start applying for shares.
- IPO Closing Date: June 29, 2023 – This marks the last day for investors to submit their applications for the IdeaForge IPO. After this date, the subscription process is closed.
- Basis of Allotment: July 4, 2023 – The basis of allotment is the process by which the shares are allocated to different categories of investors. It determines how many shares will be allotted to each investor based on the subscription demand and category-wise allocation.
- Initiation of Refunds: July 5, 2023 – In case of oversubscription or if the number of shares applied for is higher than the shares are available, refunds are initiated for the excess amount to investors who did not receive the full allotment.
- Credit of Shares to Demat Account: July 6, 2023 – The allotted shares are credited to the investors’ demat accounts on this date. Investors can now see the shares in their demat holdings.
- IPO Listing Date: July 7, 2023 – This is the day when the shares of IdeaForge will be officially listed and traded on the stock exchanges. It marks the public debut of the company’s shares.
IdeaForge Technology Financials
The company offers comprehensive UAV solutions and services to industrial and commercial sectors. IdeaForge has exhibited remarkable growth, with a revenue CAGR of 237.48% over the past three financial years and an impressive return on capital employed of 49.63% in FY 2022.
Additionally, the company boasts the highest return metrics with an ROE (Return on Equity) of 26.9% and a ROCE (Return on Capital Employed) of 37.6%.
| FY 2020 | FY 2021 | FY 2022 | H1 FY 2023 | |
| Revenue | 14.0 | 34.72 | 159.44 | 139.55 |
| Net income | (13.45) | (14.63) | 44.01 | 45.21 |
| Expenses | 29.76 | 50.84 | 111.27 | 83.95 |
| Margin (%) | (96.07) | (42.14) | 27.60 | 32.40 |
Benefits and Risks of Investing in IdeaForge Technology Ltd. IPO
Investing in the IPO of IdeaForge Technology Ltd. could potentially be beneficial for several reasons.
- Growth of the Drone Technology Industry: The drone technology industry is experiencing a significant growth phase, and India has immense potential to emerge as a global drone hub. With a compound annual growth rate (CAGR) of 18% from 2018 to 2022, the industry offers promising prospects for companies like IdeaForge.
- Diversified Product Portfolio: IdeaForge boasts a diversified product portfolio for unmanned aerial vehicles (UAVs), encompassing a comprehensive software stack for flight safety, autopilot sub-systems, battery systems, and communication systems. This end-to-end approach allows the company to provide holistic and reliable solutions to its customers.
- Commitment to Innovation: IdeaForge has displayed a strong commitment to innovation, evident in their filing of 62 patents, including 28 in India and 34 internationally. This intellectual property portfolio underscores their technological prowess and sets them apart from competitors.
- Backed by Renowned Investors: IdeaForge has garnered support from renowned investors, including Infosys Ltd, Qualcomm, and Asia Pacific Pte. Ltd. This backing from industry leaders further reinforces the company’s potential and enhances investor confidence.
However, it’s important to consider the potential risks and downsides of investing in IdeaForge’s IPO:
- High Valuation: The stock is priced at 79 times its FY23 earnings, suggesting a high valuation. It may be advisable to wait for better entry points post-listing and more clarity on the growth trajectory in the medium term.
- Order Book Concerns: The current order book is marginally higher than its FY23 sales, a concern given that companies serving the defence/government sector typically have an order book of at least 3-4 times their sales.
- Debt and Obligations: With a net worth of ₹324 crores, the company carries a debt and obligations of ₹129 crores, representing 0.5 times its net worth. While the company plans to use IPO proceeds for repayment and to meet the working capital gap, improvement in the working capital cycle will be critical for operational cash flow generation.
- Dependence on Government Orders: The business will continue to depend predominantly on government orders for the foreseeable future. Delays or cancellations of orders can significantly impact growth.
Given these factors, investors should carefully consider their risk tolerance, investment horizon, and the company’s growth prospects before deciding to invest in the IPO of IdeaForge Technology Ltd.
Conclusion
IdeaForge Technologies’ IPO presents a compelling investment opportunity. As a leader in the drone technology industry, the company has demonstrated exceptional financial performance, boasting impressive revenue growth and profitability
With its diversified product portfolio, strong intellectual property portfolio, and backing from renowned investors, IdeaForge is well-positioned to capitalize on the growing drone market.
You can invest in this IPO with just a few clicks. Apply For The IPO
