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Drone Maker ideaForge Files For IPO, Investors Eyeing At Partial Exit

The business intends to use the proceeds from its new offering to reduce debt (by Rs. 50 crore), pay for working capital needs (by Rs. 135 crore), support product development, and for other general corporate reasons (Rs 40 crore)

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Drone Maker ideaForge Files For IPO, Investors Eyeing At Partial Exit
Drone Maker ideaForge Files For IPO, Investors Eyeing At Partial Exit

Drone manufacturing company ideaForge has filed its draft red-herring prospectus (DRHP) with public market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The offering will compromise of a fresh issue of Rs 300 crore and an offer-for-sale of up to 4.8 million shares.The offer also includes a reservation for a subscription by eligible employees, as per the filing.

Company's investors, including Celesta Capital, Qualcomm and Exim Bank of India, with Ashish Bhat, A&E Investment LLC, Agarwal Trademart, Indusage Partners and Society for Innovation and Entrepreneurship (SINE), are eyeing at partial exit through the IPO.

Celesta currently holds 13.35 per cent stake in the firm, Qualcomm holds 3.79 per cent and Exim Bank owns 1.09 per cent. JM Financial Limited and IIFL Securities Limited are the book running lead managers to the issue. 

IdeaForge stated that it might think about issuing specialised securities for as much as Rs 60 crore. In that instance, the business will make the new issue smaller. 

The business intends to use the proceeds from its new offering to reduce debt (by Rs. 50 crore), pay for working capital needs (by Rs. 135 crore), support product development, and for other general corporate reasons (Rs 40 crore).

Drone maker ideaForge is based in Mumbai and was created in 2007 by Ankit Mehta, Rahul Singh, Ashish Bhat, and Vipul Joshi. It serves the enterprise market, the homeland security industry, and the defence industry.

By the end of 2022, the DRHP estimates that its client will have flown its UAVs more than 300,000 times. It completed a USD 20 million Series B investment round in April of last year under the direction of the private equity company Florintree Advisors. Along with the Exim Bank of India, other investors in the round included Celesta Capital, Infosys, Qualcomm, and Infina. 

According to documents filed with SEBI, the drone manufacturer turned a profit of Rs 44.01 crore in FY22 and earned Rs 45.21 crore for the six-month period ending September 30, 2022. The company's sales climbed by 359.24 per cent, from Rs 34.72 crore in FY21 to Rs 159.44 crore in FY22.


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