Drone maker ideaForge Technology filed papers with capital markets regulator Sebi to raise capital via an initial public offering. The drone designer and manufacturer boasted of approximately 50% market share in Indian unmanned aircraft systems. The IPO comprises fresh issues of shares worth Rs 300 crore as well as an offer-for-sale (OFS), with the promoters and shareholders offloading 48.7 lakh shares with a face value of Rs 10 each. The proceeds from its fresh issuance to the tune of Rs 50 crore will be utilized for repayment / prepayment of certain debts, Rs 135 crore will be towards funding working capital requirements and Rs 40 crore for investment in product development and general corporate purposes.

ideaForge Technology’s products and services range from UAVs, batteries, communication systems to drone-related software and solutions, catering to customers applications for surveillance, mapping and surveying. The firm’s debut on the bourses would be the first-ever listing of a drone manufacturing company. JM Financial and IIFL Capital are the book running lead managers for the Infosys and Qualcomm-backed company.

Over the last three years, ideaForge’s revenue from operations grew at 237.48?GR, and the company turned profitable in Q2FY23, driven by sales to the Indian defense sector. A 1Lattice Report referenced in the DRHP estimated that the drone industry is worth $21 billion, growing at a 20?GR. India’s drone industry seeks to establish itself as an important drone hub by 2030.

Drone startup DroneAcharya Aerial Innovations listed on BSE SME platform in December 2022, listing at a bumper premium of 90%. DroneAcharya stock made its market debut at Rs 102 on the BSE, as compared to the public issue price of Rs 54. The scrip shortly thereafter rose to Rs 107 per share, up 98%. DroneAcharya’s issue size was approximately 12.5% of ideaForge’s issue size, clocking in at fresh issues of Rs 34 crore. The aerial innovations company provides a high-end ecosystem of drone solutions, such as training, surveys, data processing and surveillance.

FY22 Revenue

DroneAcharya: Rs 3.59 crore
ideaForge Technologies: Rs 1,59.43 crore

FY22 Profit

DroneAcharya: Rs 40.65 lakhs
ideaForge Technologies: Rs 44 crore

Fresh Issue

DroneAcharya: Rs 34 crore
ideaForge Technologies: Rs 300 crore

OFS

DroneAcharya: Nill
ideaForge Technologies: 4,869,712 shares

Board

DroneAcharya: SME Board
ideaForge Technologies: Main Board

However, in its DRHP, ideaForge did not mention DroneAcharya among its listed peers. “There are no listed companies that exclusively undertake the manufacturing of drones. Hence, basis factors such as the scale of the business, exposure to the defence sector, manufacturing of electronics products, a proxy set of listed peers of MTAR Technologies Limited, Data Patterns (India) Limited and Astra Microwave Products Limited have been identified for our Company,” stated the Mumbai-based drone manufacturer.