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IdeaForge IPO Details, Date, Issue Price, GMP & Review

IdeaForge, founded in 2007, is a market leader in the Indian unmanned aircraft systems (UAS) market, with a 50% market share in Fiscal 2022. They have the largest operational deployment of indigenous UAVs across India. As of March 31, 2023, customers completed over 350,000 flights using their UAVs. The company has filed 41 patent applications, including 20 international and 21 in India. They cater to domestic and international customers across defense and civil sectors, primarily for surveillance, mapping, and surveying applications.

The company's product portfolio includes hardware, software, embedded sub-systems, and solutions. The company has flown over 4,500 flights under warranty and is developing UAVs as an on-demand service solution. The company has grown at a CAGR of 131.47% in revenue from operations over the last three fiscals, with a Return on Capital Employed of 12.51% in Fiscal 2023.

IdeaForge Limited IPO Details:

IPO Open Date June 26, 2023
IPO Close Date June 29, 2023
Listing Date July 7, 2023
Face Value Rs. 10 per share
Price Rs. 638 to Rs. 672 per share
Lot Size 22
Issue Size Approx. Rs. 567 cr.
Pre-IPO Placement Rs. 60 cr.
Fresh Issue Rs. 240.00
Offer for Sale 4,869,712 shares of Rs. 10
Issue Type Book Built Issue IPO
Listing At BSE, NSE
QIB Shares Offered Not more than 75% of the Offer
NII (HNI) Shares Offered Not less than 15% of the Offer
Retail Shares Offered Not less than 10% of the Offer
Company Promoters Mr. Ankit Mehta, Mr. Rahul Singh, and Mr. Ashish Bhat.

 

Objects of the Issue

Particular Amount (Rs. mil)
Repayment/prepayment of certain indebtedness availed by the Company 500
Funding working capital gap 1350
Investment in product development 400
General corporate purposes -

 

RISK FACTORS

  • A lengthy working capital cycle in the past, which might follow in the future, could have an adverse effect on financial conditions.
  • They are highly dependent on global vendors for the supply of components and may need help to reduce their dependency on such imports.
  • Business is dependent on their single manufacturing facility. Any slowdown or shutdown in manufacturing operations could have an adverse effect on business.
  • They operate in an industry that is highly regulated and subject to change. Failure to comply with the regulations laid down by the government can impact business.
  • They can face potential challenges if the government budget declines, resulting in reduced orders, contract terminations, and policy changes. In FY23 government's share in total revenue from operations stood at 69.85%, down from 89.01% in the preceding year.
  • Ineffective competition negatively impacts business, operations, financial condition, and cash flows.

OPPORTUNITIES

The Indian drone industry is driven by industry-friendly policies, increased demand for monitoring and surveillance, cost-effective data collection, and new use cases like utility inspection and search and rescue operations. The industry benefits from a favorable ecosystem created by government policies, including the modified Indian Trade Classification Schedule-1 (Import Policy), addressing both demand and supply sides of drone production.

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    Drone technology is a rapidly growing sector with a potential market size of around $2.71 billion in India. The industry is projected to grow from $43 million by Fiscal 2022 to $812 million by Fiscal 2027, with a CAGR of 80% over Fiscals 2022-2027.

    STRENGTHS

    First-mover advantage

    IdeaForge entered the UAV market in 2009 and enjoys first-mover advantage, the company holds market share of around 50% in Fiscal 2022. They rank 7th globally in the dual-use category drone manufacture.

    Diversified portfolio

    The company offers a diversified product portfolio of UAVs for various use cases, including civil and defence applications. The company's UAVs have been tested in extreme conditions, including high altitudes and deserts.

    Diverse consumer base

    The company has grown by providing advanced customer-centric solutions for surveillance, mapping, and surveying. They cater to domestic and international sectors, including Indian defence forces and civil customers and 35% of their total customers being repeat customers.

    In-house product development centre

    They has integrated a In-house product development centre that has a strong product development center, enabling the design, development, engineering, and manufacturing of UAVs which in turn helped in customization, and cost reduction while maintaining margins. The company also has a custom battery management system, ensuring high cycle life and optimized battery life.

    In-house design to delivery capabilities

    In-house design to delivery capabilities enable UAVs to be designed, developed, and manufactured in-house, focusing on performance, reliability, and autonomy. The company's manufacturing facility in Navi Mumbai, Maharashtra.

    Company Strategy

    Invest in product innovation

    Evolution is necessary everything and investing in product innovation, engineering, and design is crucial for growth. The company focuses on continuous product development and enhancing its technology stack. The company plans to invest substantially in product innovation, engineering, and design to expand offerings and increase market presence.

    open-account

    Expansion in foreign market

    The global drone industry is expected to grow at a CAGR of 19%, reaching $51.4 billion in 2027 and 91.3 billion by 2030. The company has a strong presence in the US, Bangladesh, Vietnam, and Nepal, and plans to expand into the US market.

    Expansion in product portfolio

    The company plans to expand its product portfolio and offer differentiated UAV offerings in various sectors, including infrastructure, retail, agriculture, and logistics.

     

    Financial performance
    Particulars 31-Mar-23 31-Mar-22 31-Mar-21
    Revenue from operations 1860.07 1594.39 347.18
    Other income 103.95 20.09 16.17
    Total Income 1964.02 1614.48 363.35
    Cost of materials consumed 957.38 519.9 220.99
    Changes in inventories -368.8 -101.69 -37.96
    Employee benefits expense 509.13 268.53 192.49
    Finance costs 49.35 176.7 16.72
    Depreciation and amortization 118.58 72.84 35.81
    Other expenses 291.43 182.43 80.34
    Total Expenses 1556.07 1112.71 508.39
    Profit/loss for the year 319.88 440.06 -146.26

     

    Particulars Fiscal 2023 Fiscal 2022 Fiscal 2021
    EBITDA 574.88 751.31 -92.51
    EBITDA margin % 30.91 47.12 -26.65
    Adjusted EBITDA 851.87 814.09 -33.63
    PAT 317.87 440.06 -146.26
    PAT Margin % 17.2 27.6 -42.13
    ROE 13.11 39.46 -22.88
    Return on the capital employed % 12.51% 49.63% -15.18%
    Return on net worth % 9.85% 26.95% 24.48%
    Revenue from operations split by defence and civil
    Defence 1286.2 1277.66 48.29
    Defence (% of total) 69.15 80.07 13.91
    Civil 399.68 317.73 298.89
    Civil (% of total) 21.49 19.93 83.09
    Order Book
    Defence 1851.99 3055.34 1284.78
    Civil 70.72 53.41 79.18
    Total 1922.71 3108.75 1363.96

     

    Product portfolio and sub-components
    Product name Applications Range
    Ninja Security and surveillance Upto 2 km
    RYNO Mapping, land survey, mining area planning,

    construction and real estate

    Upto 4 Km
    Q4i Security and surveillance, traffic management,

    crowd management and disaster relief

    Upto 4 Km
    Q6 Mapping, land survey, mining area planning,

    construction and real estate

    Upto 10 Km
    NETRA V4+ Security and surveillance, border security,

    antiterrorism, counter  insurgency,

    crime control and drone as a first responde

    Upto 10 Km
    switch Security and surveillance, border security,

    antiterrorism, counter insurgency and

    wildfire management

    Upto 15 Km
    Netra V4 Pro Defence, public safety, emergency response, mapping 15 km

     

    Software and embedded sub-system
    Product name Applications
    BlueFire Touch Mapping and surveillance
    Autopilot
    Solutions
    BlueFire MapAssist Mapping and surveying
    BlueFire Live Security and surveillance, border management,

    crowd monitoring, campus security,

    disaster management, remote monitoring,

    smart cities, mapping and ISR operation

    Surveillance Pro Security and surveillance, border management,

    crowd monitoring, campus security, disaster management,

    remote monitoring and smart cities

    GIS Pro Survey grade mapping

     

    Capacity Utilization

    Products Installed capacity per day as of March 31, 2023* Capacity Utilization as on March 31, 2023 * Capacity Utilization as on March 31, 2022* Capacity Utilization as on March 31, 2021*
    Quadcopter UAV 5 95% 93% 88%
    Switch UAV 4 82% 75% 0%
    Payload 15 95% 96% 79%
    Battery 20 87% 84% 83%
    Communication Box 15 90% 90% 88%

     

    Comparison with Listed Industry Peers

    No listed company specializes in drone manufacturing. Factors like business scale, defence sector exposure, electronics product manufacturing, and industry peers like MTAR Technologies, Data Patterns India Limited, and Astra Microwave Products are identified for the company.

     

    How to Apply for ideaForge Technology Limited IPO?

    Applying in the ideaForge Technology Limited IPO is similarly easy and hassle-free just like other IPOs if you have a demat account with Moneysukh. If you don’t you can open the demat account with Moneysukh and follow the instructions given below.

    Also Read: How to Open Demat Account: Benefits and Documents Required

     

    Steps to Apply for ideaForge Technology Limited IPO:

    Step 1: When ideaForge Technology Limited IPO opens you can apply online.

    Step 2: And for that visit trade.moneysukh.com and log in with your User ID & password.

    Step 3: Here navigate to the IPO section and click on ideaForge Technology Limited IPO.

    Step 4: Now fill in all the essential information like price, quantity, and so on.

    Note: While applying in any IPO, always bid at cutoff price before submitting your application. 

    Step 5: Finally make the payment and your IPO application is successful.

    Also Read: What are the Risk Factors Involved in Applying for an IPO

    How to Check ideaForge Technology Limited IPO Allotment Status?

    Checking the allotment of shares in ideaForge Technology Limited IPO is also easier with Moneysukh. But you have to wait till the closing of the IPO because only after the closing of the IPO, the allotment is decided as per the subscription.

    Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

    If the IPO is oversubscribed, there is less chance of getting the allotment in the IPO, and if you have been not allotted any share, you will get your money refunded into your linked bank account. While if you got the allotment of any share, it will be transferred into your demat account, which you can sell on the day of listing or hold for long-term investment.

    Also Read: Trading or Investing Which is Better and More Profitable

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