USA: IdeaForge Technology, a manufacturer of drones, has submitted preliminary paperwork to Sebi, the agency that oversees the capital markets, in order to raise money through an IPO (IPO).
According to the draft red herring prospectus, the public offering consists of a fresh issue of equity shares worth Rs 300 crore and an offer for sale (OFS) of 48,69,712 equity shares by one of the promoters and existing shareholders (DRHP).
Shares in the OFS are being offered by Ashish Bhat, A&E Investment LLC, Agarwal Trademart, Celesta Capital II Mauritius, Celesta Capital II-B Mauritius, Export Import Bank of India, Indusage Technology Venture Fund I, Qualcomm Asia Pacific Pte Ltd, and Society for Innovation and Entrepreneurship.
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Additionally, the company may think about issuing shares for up to Rs 60 crore. The size of the new issue will be decreased if such placement is successful.
A total of Rs 50 crore of the proceeds from the new issuance will be used to pay off debt, Rs 135 crore to meet working capital needs, and Rs 40 crore to invest in product development and other general corporate purposes.
The Mumbai-based company, which was established in 2007, has the largest operational deployment of domestic unmanned aerial vehicles (UAVs) in India, with its drones typically taking off every five minutes for mapping and surveillance.
The armed forces, the central armed police, state police departments, emergency response teams, forest departments, and civil customers are some of ideaForge's clients.
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UAVs from ideaForge were used to monitor construction sites in Kathmandu, Nepal, and other places during the 2015 earthquake to help with search and rescue operations.
According to the draft papers, ideaForge UAVs were able to deliver crucial intelligence during a terrorist incident in Pampore in 2016 by revealing the precise locations of the terrorists.
Additionally, ideaForge's Ninja UAV was used in conjunction with its partnership with railways to strengthen their surveillance operations to reduce theft and pilferage cases.
The Society for Innovation and Entrepreneurship (SINE), IIT Bombay, and CIIE Initiatives, IIM Ahmedabad, respectively, served as the company's initial incubators.
The company turned things around, going from a loss in the FY21 to a profit of Rs. 44.01 crore in the FY22. Its operational revenue increased from Rs 34.72 crore in the fiscal year 2021 to Rs 159.44 crore in the fiscal year 2022.
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The revenue from operations for the six months ended September 30, 2022, was Rs 139.55 crore, and the profit after taxes was Rs 45.21 crore.
The issue's lead managers for the running books are JM Financial and IIFL Securities.
Droneacharya Aerial Innovations was admitted to the BSE SME platform last year.