IdeaForge Technology Limited IPO - Review, GMP & Valuation

IdeaForge Technology Limited IPO - Complete Overview

Established in 2007, IdeaForge Technology Limited is renowned as India's largest manufacturer of drones, unmanned aircraft systems.

The company specializes in developing cost-effective and user-friendly unmanned aircraft systems for various applications, including research, development, production, and operation.

With a core focus on technological advancement in the UAV field, IdeaForge India primary objective is to produce top-quality surveillance and mapping equipment.

IdeaForge's drones find extensive utilization in industries such as construction, real estate, defense forces, and mining, offering significant benefits.

Notably, the company currently holds around 50% of the UAV market share in India and achieved the 7th global ranking in December 2022 among dual-use category drone manufacturers.

Additionally, IdeaForge Technology Limited offers two key software solutions: BlueFire Live and BlueFire Touch. BlueFire Live enables secure live streaming of UAV video, while BlueFire Touch commands mapping and surveillance missions efficiently.

 

What does the company do? 

IdeaForge Technology Limited holds the position of being the foremost manufacturer of unmanned aircraft systems, focusing on developing high-quality surveillance and mapping equipment. Their primary objective is to spearhead technological advancements in the UAV field. Their products find applications across various industries such as mining, construction, real estate, and defense, aiding in planning and mapping requirements.

 

 

IPO Overview 

IdeaForge Technology IPO is scheduled to be listed on the BSE and NSE on June 26, 2023, and will conclude on June 28, 2023 and it becomes mainline IPO listed companies in India. 

The shares have a face value of Rs 10 per share, and the price range for the IPO is set between Rs 638 and Rs 672 per share. Each lot consists of 22 shares.

The IdeaForge IPO has a total issue size of Rs 567 crore. Retail investors have the option to bid for a minimum of 1 lot and a maximum of 13 lots.

In terms of allocation, 75% of the offering is reserved for institutional buyers, 15% for non-institutional buyers, and 10% for retail investors.

 

IdeaForge Technology Limited IPO timetable

Events	Dates
IPO Opening Date	26 June 2023
IPO Closing Date	29 June 2023
IPO Allotment Date	04 July 2023
Refund Initiation	05 July 2023
IPO Listing Date	07 July 2023

 

IdeaForge Technology Limited IPO Details

IPO opening & closing date	26 June 2023 to 29 June 2023
Face Value	Rs 10 per share
Price	Rs 638 to Rs 672 per share
Lot Size	22 shares per lot
Price of 1 Lot	Rs 14,784
Issue Size	Rs 567.24 Cr
Offer for Sale	4,869,712 Shares
Fresh Issue	Rs. 240.00 Cr
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

IdeaForge Technology Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
Minimum Lot Investment (HNI)	14 Lots
Maximum Lot Investment (HNI)	67 Lots

 

IdeaForge Technology Limited IPO Reservation

Institution Portion	75%
Non-institution Portion	15%
Retail Portion	10%

 

Company Financials

Amount in Crores

Period	FY-21	FY-22	FY-23
Total Assets	123.74	222.33	487.93
Total Revenue	36.34	161.45	196..40
Net Profit	-14.63	44.01	31.99
Net Worth	59.63	163.30	324.72
Reserve & Surplus	59.63	110.28
Total Borrowing	50.57	5.68	86.50

 

Objective of the Issue

The purpose of raising funds through this IdeaForge IPO is to accomplish various goals, including debt repayment, investment in product development, meeting working capital requirements, and addressing general corporate needs.

 

Promoters And Management of IdeaForge Technology Limited

IdeaForge Technology Limited boasts a highly capable leadership team consisting of seasoned professionals with extensive experience in business and finance.

Mr. Ankit Mehta, who serves as the CEO With a wealth of knowledge and expertise, to guide the strategic direction and overall management of the company.

Playing a crucial role in the company's engineering endeavors is Mr. Rahul Singh, who holds the position of Vice President of Engineering and serves as a whole-time director.

Taking charge of research and development is Mr. Ashish Bhat, who holds the position of Vice President of Research & Development and also serves as a whole-time director.

They currently possess a significant stake of 60.65% in the company, which will undergo dilution after the issue.

 

Peer Comparison

In the rapidly growing drone sector, IdeaForge Technology Limited has successfully positioned itself as a dominant player, securing an impressive 50% market share. Operating in a market that is not overly saturated with competitors, IdeaForge has emerged as a frontrunner in India's expanding drone industry.

While the market does have notable competitors such as Urban Matrix, PixelVision Technology, and Big Bang Boom Solutions, IdeaForge has managed to carve out a substantial portion of the market for itself. 

 

IPO's Valuations

IdeaForge India aims to achieve a post-issue implied market capitalization of up to Rs 2,800 crore. As part of their upcoming IPO, the company plans to raise Rs 240 crore. Out of this amount, Rs 50 crore will be allocated towards debt repayment, while Rs 135 crore will be utilized to meet their working capital requirements. Furthermore, the diluted EPS for the FY 22 is reported as Rs 13.84, which translates to Rs 13.13 after considering potential dilution factors. The P/E ratio is not specified by the company. However, as per the EPS the P/E ratio of the company is 51. 

 

Dividend Policy

In the three preceding fiscal years, IdeaForge Technology Limited did not declare any dividends. However, a recent development has emerged as the Board of Directors made a significant announcement regarding the financial year 2023-24. They have declared an interim dividend of Rs 18 per equity share of the company.

 

IPO's Strengths

• Advanced technology.
• Significant market share.
• Reputable and recognizable brand.
• Strong management team.
• High quality products to cater to diverse needs and excel in multiple areas.

 

IPO's Weakness

• Any changes in market dynamics could impact its revenue and profitability.
• Increasing competition in the drone industry.
• Compliance with changing regulatory frameworks can be challenging. 

 

 

IPO GMP

On June 21, 2023, IdeaForge Technology Limited has a GMP of approximately Rs 570 (+/-) within the IdeaForge Technology share price of Rs 672. The projected IPO listing price is estimated to be Rs 1242, implying an anticipated profit or loss of about 84.82%.

 

Conclusion

IdeaForge Technology Limited has established itself as a prominent market leader in the field of UAVs. The company has garnered a strong reputation and the trust of its customer base, which speaks volumes about the quality of its offerings.

Furthermore, the GMP of the company's shares indicates a notable profit potential, serving as a positive sign for investors. However, it is crucial to conduct a comprehensive analysis of every aspect of the IPO before making investment decisions.

 

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To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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