IdeaForge IPO– IdeaForge intends to offer shares of its company to the public for the first time. This move will enable investors to become shareholders and potentially benefit from the company’s future success.
ideaForge Technology Limited, established in 2007, specializes in creating Unmanned Aircraft Systems (UAS). Their drones are designed for various purposes like mapping, security, and surveillance. These drones have a wide range of applications, including mining area planning, mapping, and assisting construction and real estate operations. They also support defense forces in conducting Intelligence, Surveillance, and Reconnaissance (ISR) activities along borders.
The company offers two main software solutions:
- BlueFire Live!: This software allows secure live streaming of the drone’s video feed and enables remote control of the payload from a central location.
- BlueFire Touch: This Ground Control Software (GCS) is used to plan and execute mapping and surveillance missions. It allows users to pre-plan missions based on the operational area and target locations using waypoint-based navigation.
ideaForge holds a significant position in the Indian UAS market, capturing around 50% of the market share in fiscal year 2022. They have the largest deployment of domestically manufactured UAVs in India, with an ideaForge drone taking off every five minutes on average for surveillance and mapping purposes.
According to a report by Drone Industry Insights in December 2022, ideaForge was ranked 7th globally among drone manufacturers operating in both civilian and defence sectors.
ideaForge IPO Timetable
| Event | Tentative Date |
|---|---|
| Opening Date | Monday, 26 June 2023 |
| Closing Date | Thursday, 29 June 2023 |
| Basis of Allotment | Tuesday, 4 July 2023 |
| Initiation of Refunds | Wednesday, 5 July 2023 |
| Credit of Shares to Demat | Thursday, 6 July 2023 |
| Listing Date | Friday, 7 July 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on Jun 29, 2023 |
IdeaForge IPO Details
| IdeaForge IPO Dates | 26 – 29 June 2023 |
| IdeaForge IPO Price | INR 638 – 672 per share |
| Fresh issue | INR 240 crore |
| Offer For Sale | 4,869,712 shares (INR 310.69 – 327.24 crore) |
| Total IPO size | INR 550.69 – 567.24 crore |
| Minimum bid (lot size) | 22 shares (INR 14,784) |
| Face Value | INR 10 per share |
| Retail Allocation | 10% |
| Listing On | BSE, NSE |
Objectives of Ideaforge IPO
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
- Repayment/prepayment of certain indebtedness availed by the company;
- Funding working capital requirements,
- Investment in product development, and
- General corporate purposes.
Company Financial – IDEAFORGE
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves and Surplus | Total Borrowing |
|---|---|---|---|---|---|---|
| 31-Mar-20 | 79.79 | 16.32 | -13.45 | 68.12 | 68.05 | 5.30 |
| 31-Mar-21 | 123.74 | 36.34 | -14.63 | 59.63 | 59.63 | 50.57 |
| 31-Mar-22 | 222.33 | 161.45 | 44.01 | 163.30 | 110.28 | 5.68 |
| 31-Mar-23 | 487.93 | 196.40 | 31.99 | 324.72 | 86.50 |
Ideaforge lot size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 22 | ₹14,784 |
| Retail (Max) | 13 | 286 | ₹192,192 |
| S-HNI (Min) | 14 | 308 | ₹206,976 |
| S-HNI (Max) | 67 | 1,474 | ₹990,528 |
| B-HNI (Min) | 68 | 1,496 | ₹1,005,312 |
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IDEAFORGE IPO- KPI
Key Performance Indicator
| KPI | Values |
|---|---|
| P/E (x) | 87.54 |
| Market Cap (₹ Cr.) | 2800.2 |
| ROE | 13.11% |
| ROCE | 12.51% |
| EPS (Rs) | 7.6 |
| RoNW | 9.83% |
- IdeaForge is launching its maiden combo IPO, including fresh equity shares worth Rs. 240 crore and an Offer for Sale (OFS) of 4,869,712 shares, aiming to raise a total of Rs. 567.25 crore at the upper cap.
- The IPO has a price band of Rs. 638 to Rs. 672 per share, with a face value of Rs. 10 each.
- Subscription for the IPO opens on June 26, 2023, and closes on June 29, 2023.
- The minimum application size for the IPO is 22 shares, with subsequent multiples.
- The IPO represents 20.26% of the post-IPO paid-up capital of the company.
- The company has reserved 13,112 shares for eligible employees, offering them a discounted price of Rs. 32 per share.
- The IPO allocation is divided with a minimum of 75% for Qualified Institutional Buyers (QIBs), a maximum of 15% for High Net Worth Individuals (HNIs), and a maximum of 10% for Retail investors.
- The company conducted a pre-IPO placement of 892,857 equity shares at Rs. 672 per share, raising Rs. 60 crore.
- The net proceeds from the fresh equity issue will be utilized for repayment/prepayment of certain borrowings, working capital, product development, and general corporate purposes.
- JM Financial Ltd. and IIFL Securities Ltd. are the joint Book Running Lead Managers, and Link Intime India Pvt. Ltd. is the registrar of the IPO.
Financial Performance of Ideaforge IPO
- IdeaForge (ITL) has reported its consolidated turnover/net profit (loss) figures for the last three fiscal years: Rs. 36.34 crore/Rs. (14.63) crore in FY21, Rs. 161.45 crore/Rs. 44.01 crore in FY22, and Rs. 196.40 crore/Rs. 31.99 crore in FY23.
- The company’s top line experienced growth in FY23, but its bottom line witnessed a decline.
- ITL’s average EPS (Earnings per Share) over the past three fiscal years is Rs. 7.60, and the average RoNW (Return on Net Worth) is 9.83%.
- The IPO issue is priced at a P/BV (Price-to-Book Value) ratio of 7.74 based on the NAV (Net Asset Value) of Rs. 86.81 as of March 31, 2023.
- The post-IPO NAV is estimated at Rs. 150.08 per share (upper cap), resulting in a P/BV ratio of 4.48.
- ITL’s ROE (Return on Equity) exhibited volatility with figures of (22.88%) in FY21, 39.46% in FY22, and 13.11% in FY23.
- The company’s RoCE (Return on Capital Employed) also displayed significant fluctuations with figures of (15.18%) in FY21, 49.63% in FY22, and 12.51% in FY23.
- PAT (Profit After Tax) margins for ITL were (42.13%), 27.60%, and 17.20% in FY21, FY22, and FY23, respectively.
- The asking price translates to a P/E (Price-to-Earnings) ratio of 87.50 if FY23 earnings are considered based on post-IPO fully diluted paid-up equity capital.
- The aggressive issue pricing suggests a demand for a significant premium, potentially driven by the hype surrounding the Drone segment.
