Ideaforge Technology
Book Building issueMainboard₹567 Cr issue
+94.21%
Listing gain over issue price
Issue size
₹567 Cr
1 lot at cut-off
₹14,784
Lot size
22shares
Open
26 Jun 2023
Close
30 Jun 2023
Allotment
05 Jul 2023
Listing
07 Jul 2023
Listing performance
Issue price
₹672
Listed at
₹1,305.10
Listing-day close
₹1,295.50
Latest price
₹646.55
Close on 23 Oct 2026
Listing gain
+94.21%
Return since issue
-3.79%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Jun 2023 – 30 Jun 2023
- Listing date
- 07 Jul 2023
- Face value
- ₹10 per share
- Issue price
- ₹672 per share
- Lot size
- 22 shares
- Issue type
- Book Building issue
- Total issue size
- ₹567 Cr
- Market cap at offer price
- ₹2,800 Cr
- Promoter holding
- 32.94% → 29.35% pre-issue → post-issue
- ISIN
- INE349Y01013
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- JM Financial Ltd.
- Registered office
- EL-146 TTC Industrial Area, Electronic Zone, MIDC Mahape, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 37,92,894 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 22 shares per lot, in multiples, at ₹672
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 22 | ₹14,784 |
| Retail (max) | 13 | 286 | ₹1,92,192 |
| S-HNI (min) | 14 | 308 | ₹2,06,976 |
| S-HNI (max) | 67 | 1,474 | ₹9,90,528 |
| B-HNI (min) | 68 | 1,496 | ₹10,05,312 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
37,92,894
Anchor portion
₹255 Cr
at ₹672 per share
Valuation and performance
Valuation at offer price
₹672 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.12 | — |
| P/E (×) | 82.76 | — |
| Market cap | — | ₹2,800 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 9.85%
- ROCE
- 12.51%
- Debt / equity
- 0.27
- PAT margin
- 17.20%
- NAV per share
- ₹86.81
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Ideaforge Technology
ideaForge Technology Limited, incorporated on February 8, 2007, is a licensed manufacturer of Unmanned Aerial Vehicles (UAVs) under the Industries (Development and Regulation) Act, 1951. The company designs, manufactures, and sells unmanned aircraft systems including hardware (UAVs, payloads, batteries, chargers, communication systems), software (GCS software, autopilot sub-systems), and solutions. Founded by promoters Ankit Mehta, Rahul Singh, and Ashish Bhat, ideaForge holds approximately 50% market share in the Indian UAS market as of Fiscal 2022. All products are manufactured in-house at their facility in Navi Mumbai, Maharashtra. The company generates revenue through sales to government entities (69.85% of revenue in Fiscal 2023), with the remainder from private and international customers. The business has demonstrated significant growth, with revenue from operations increasing from ₹347.18 million in Fiscal 2021 to ₹1,860.07 million in Fiscal 2023.
Company Analysis
from RHPideaForge Technology Limited is a pioneer and pre-eminent market leader in the Indian unmanned aircraft systems (UAS) market, manufacturing UAVs, payloads, batteries, software, and solutions primarily for surveillance, mapping, and surveying applications across defence and civil sectors.
ideaForge Technology Limited, incorporated on February 8, 2007, is a licensed manufacturer of Unmanned Aerial Vehicles (UAVs) under the Industries (Development and Regulation) Act, 1951. The company designs, manufactures, and sells unmanned aircraft systems including hardware (UAVs, payloads, batteries, chargers, communication systems), software (GCS software, autopilot sub-systems), and solutions. Founded by promoters Ankit Mehta, Rahul Singh, and Ashish Bhat, ideaForge holds approximately 50% market share in the Indian UAS market as of Fiscal 2022. All products are manufactured in-house at their facility in Navi Mumbai, Maharashtra. The company generates revenue through sales to government entities (69.85% of revenue in Fiscal 2023), with the remainder from private and international customers. The business has demonstrated significant growth, with revenue from operations increasing from ₹347.18 million in Fiscal 2021 to ₹1,860.07 million in Fiscal 2023.
Unmanned Aerial Systems (UAS)Defence and AerospaceSurveillance and Mapping TechnologyDrone Manufacturing
Objects of the Issue
- Repayment/prepayment of certain indebtedness availed by our Company ₹500.00 million p.25
- Funding working capital gap ₹1,350.00 million p.25
- Investment in product development ₹400.00 million p.25
- General corporate purposes p.25
- Repayment/prepayment of certain indebtedness availed by our Company ₹ 500.00 million p.109
- Funding working capital gap ₹ 1,350.00 million p.108
- Investment in product development ₹ 400.00 million p.108
- General corporate purposes p.108
- Repayment of borrowings Not specified as a fixed amount in this section p.111
- Funding working capital gap ₹1,350.00 million p.113
- Investment in product development ₹400.00 million p.115
- General corporate purposes Balance of Net Proceeds (not exceeding 25% of Gross Proceeds) p.117
- Not stated in this section of the document
- The document references Pre-IPO Placement aggregating to ₹ 600.00 million and mentions revised Fresh Issue size of up to ₹ 2,400.00 million, but specific detailed objects of the offer with purpose breakdown are not provided in this excerpt. p.369
- Funding capex (capital expenditure) ₹2,400.00 million p.401
Issue Structure
- Total Issue
- Up to [●] Equity Shares aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹ 2,400.00 million
- Offer for Sale
- Up to 4,869,712 Equity Shares aggregating up to ₹ [●] million
- Price Band
- Floor Price of ₹ [●] per Equity Share to Cap Price of ₹ [●] per Equity Share
- Lot Size
- [●] Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
ideaForge earns revenue through the sale of hardware (UAVs, payloads, batteries, chargers, communication systems), software (GCS software and autopilot sub-systems), and solutions. The company sells primarily to Indian government entities including defence, central armed police forces, state police departments, disaster management forces, and forest departments, with a smaller portion of revenue from private civil customers and international markets through resellers. Additional revenue is generated through annual maintenance contracts with customers.
Business Segments
Sales of UAVs and related solutions to Indian defence and security agencies including defence forces, central armed police forces, state police departments, disaster management forces and forest departments.
Sales of UAVs and related solutions for civilian applications including surveillance, mapping, and surveying to private customers and international markets.
Design, development, manufacturing, and sale of tactical unmanned aerial vehicles (UAVs) and associated systems for defense, government, and commercial applications
Provides UAVs for surveillance, reconnaissance, and other defence applications to Indian defence forces
Provides UAVs for civil applications including surveillance, mapping, and surveying across various industries
Supply of UAVs and solutions for defence and security applications including surveillance, border security, anti-terrorism, counter insurgency, and intelligence gathering operations for Indian defence forces and government entities.
Supply of UAVs, software, and solutions for civil applications including surveillance, mapping, surveying, disaster management, emergency response, and other commercial applications to state police departments, disaster management forces, forest departments, and private contractors.
Design, develop, manufacture and market of Unmanned Aerial Vehicle systems used for security and surveillance
Training services, maintenance services and other ancillary services related to UAV systems
UAV systems for civil applications including surveillance, mapping, surveying, disaster relief, progress monitoring, and inspections for domestic and international customers
UAV systems for defence and strategic applications including surveillance and security operations for Indian government and defence customers
Civil UAV systems for government and other civil customers
Defence UAV systems for defence and government security applications
SWOT Analysis
Strengths
- • Licensed UAV manufacturer with government approval(p.51)
- • Strong financial performance with positive profitability trend(p.69)
- • Healthy debt service capability(p.109)
- • Established track record of revenue growth(p.69)
- • Pioneer and pre-eminent market leader in Indian UAS industry with first-mover advantage(p.122)
- • Approximately 50% market share in Indian UAS market as of Fiscal 2022(p.112)
- • Vertically integrated design-to-delivery capabilities with in-house product development centre(p.115)
- • Strong track record of revenue growth from ₹347.18M (FY21) to ₹1,860.07M (FY23)(p.112)
- • Diversified product portfolio with robust technology stack and successful outcomes in critical use cases(p.122)
- • Significant order book of ₹1,922.72 million as at March 31, 2023(p.112)
- • Pioneer and pre-eminent market leader with ~50% market share in Indian UAS in FY22(p.198)
- • First-mover advantage; first to indigenously develop and manufacture VTOL UAVs in India in 2009(p.192)
- • Largest operational deployment of indigenous UAVs across India with 350,000+ customer flights as of March 31, 2023(p.198)
- • Ranked 7th globally in dual-use (civil and defence) drone manufacturers as per Drone Industry Insights December 2022(p.198)
- • Diversified product portfolio with 7+ UAV models and software solutions for multiple use cases(p.199)
- • Vertically integrated design-to-delivery capabilities with full-stack in-house development(p.199)
- • Strong financial performance with 136.9% revenue CAGR (FY20-23) and gross margin of 68.4% in FY23(p.189)
- • 35% of total customers are repeat customers; 94.25% of revenue from repeat customers (April 2020-March 2023)(p.200)
- • Experienced founding team with deep domain expertise in UAV industry(p.229)
- • Established management team with strong educational credentials from IIT and IIM(p.229)
- • Strong board composition with independent directors and external expertise(p.226)
- • Revenue growth trajectory demonstrating market traction(p.257)
- • Market leadership position with ~50% market share in Indian UAS market(p.334)
- • Strong indigenous design, technological capabilities and vertical integration(p.334)
- • Proprietary autopilot and ground control software developed in-house(p.335)
- • First-mover advantage with indigenously developed VTOL UAVs in India(p.334)
- • Global competitive validation – ranked 7th globally in dual-use drone manufacturers(p.334)
- • Broad product portfolio with differentiated feature offerings(p.335)
- • Industry-leading support network with subscription-based care plans(p.335)
- • Strong growth trajectory with 131.47% CAGR in revenue over last three fiscals(p.334)
- • Indigenous design and technological capabilities with vertically integrated operations(p.339)
- • Established track record of designing high-adoption products(p.339)
- • Innovation process enabling superior customer experience at lower total cost of ownership(p.339)
- • Positioned to capitalize on anti-China sentiment and Indian government support for domestic drone industry(p.340)
Weaknesses
- • High dependence on customer concentration with few major customers(p.51)
- • Significant contingent liabilities from tax disputes(p.51)
- • Outstanding legal proceedings against the company(p.52)
- • Restrictive debt covenants limiting operational flexibility(p.53)
- • Negative operating cash flows despite profitability(p.70)
- • Large inventory holdings relative to operations(p.68)
- • Unresolved related party transaction conflicts(p.51)
- • Working capital intensive business with increasing working capital gap dependent on order timing and customer payment terms(p.112)
- • Significant bank guarantee and margin money requirements consuming liquidity (₹88.83M margin money for ₹355.32M guarantees in FY23)(p.112)
- • Volatile net working capital holding days: 512 days (FY21), 121 days (FY22), 301 days (FY23)(p.112)
- • High inventory days of 205 in FY23 due to keeping ready large material orders for dispatch(p.114)
- • Declining EBITDA margin from 47.12% (FY22) to 30.91% (FY23)(p.125)
- • Dependence on imported components for UAV manufacturing despite indigenization efforts(p.204)
- • Manufacturing facility located on leased premises (leave and license basis) with renewal uncertainty(p.213)
- • Elevated cash conversion cycle of 675.9 days in FY23, indicating working capital management challenges(p.191)
- • Limited long-term customer contracts; reliance on repeat orders rather than long-term agreements(p.200)
- • High product development expenses at 11.11% of revenue in FY23 required to maintain competitive position(p.202)
- • Significant operational cash burn despite revenue growth(p.261)
- • High current borrowings relative to equity base(p.256)
- • Rapid inventory build-up creating working capital pressure(p.261)
- • Loss of key executive leadership in past year(p.233)
- • Pending tax disputes reducing financial flexibility(p.275)
- • High dependence on few major customers – top customer represents 74% of FY2023 revenue(p.305)
- • Significant inventory buildup – finished goods inventory increased from ₹87.02M (FY2021) to ₹525.10M (FY2023)(p.307)
- • Large proportion of intangible assets under development – ₹215.10M as of March 31, 2023(p.279)
- • Contingent income tax and indirect tax liabilities totaling ₹69.55M(p.326)
- • Past fire incident in manufacturing premises with ₹80.04M inventory damage(p.284)
- • High dependence on government contracts and defense sector revenue(p.368)
- • Rising cost of materials as percentage of revenue and limited ability to pass on increased costs(p.339)
- • Warranty obligations and technological obsolescence costs borne without additional customer charge(p.339)
- • Incurrence of liquidated damages for delivery delays(p.340)
- • Significant cash outflow for product development without guaranteed returns(p.340)
- • Dependence on investor complaint resolution timelines(p.392)
- • Potential delays in processing investor applications and fund blocking(p.392)
Opportunities
- • Expanding UAV market driven by defense and civilian applications(p.52)
- • Product development investments to expand market reach(p.108)
- • Working capital expansion to capture growing demand(p.108)
- • Debt reduction enabling investment in growth initiatives(p.108)
- • Indian drone market projected to grow at 80% CAGR from US$43M (FY22) to US$812M (FY27)(p.112)
- • Global drone industry expected to grow at 20% CAGR to reach US$51.4B by 2027 and US$91.3B by 2030(p.149)
- • Government ban on drone imports except for R&D, defence, and security creating protective environment for domestic manufacturers(p.144)
- • PLI scheme providing US$15M incentives over three years for drone manufacturing(p.168)
- • Liberalized Drone Rules 2021 reducing approvals from 25 to 5 and opening 90% of Indian airspace as green zones(p.168)
- • Expanding civil use cases including agriculture, energy utilities, construction, mining, and GIS mapping(p.169)
- • Indian drone market projected to grow at 80% CAGR from US$43M (FY22) to US$812M (FY27)(p.197)
- • Logistics drone market valued at US$0.3B in 2022, projected to reach US$33B by 2030 with largest share of overall drone market(p.204)
- • Government ban on import of CBU/SKD/CKD drones creates domestic manufacturing opportunity(p.198)
- • India aims to become global drone hub by 2030 with approximately 1.8 lakh crore domestic manufacturing potential through indigenization(p.197)
- • Drone-as-a-Service (DraaS) business model with 'pay per use' can reduce customer investment and increase adoption(p.205)
- • Expansion into inspection and delivery applications; currently primarily focused on surveillance and mapping(p.204)
- • Production-Linked Incentive (PLI) scheme provides financial incentives to boost domestic drone manufacturing(p.204)
- • Planned capacity expansion through capital investment(p.256)
- • International market expansion via US subsidiary(p.225)
- • Product portfolio expansion through R&D investments(p.256)
- • Access to institutional capital through IPO(p.261)
- • High growth potential in Indian drone market – projected to grow at 80% CAGR from FY2022-2027(p.336)
- • Global drone industry expansion – expected to grow from US$21.1B (2022) to US$91.3B by 2030(p.336)
- • International market expansion opportunity with current minimal overseas revenue(p.318)
- • Development of UAV-as-a-service (on-demand service solution) offering(p.335)
- • Diverse customer base of 265 customers across defence and civil sectors(p.336)
- • Growing domestic defence spending and modernization priorities(p.336)
- • Government incentives and liberalized regulatory framework for indigenous drone manufacturing(p.338)
- • Government policies supporting indigenous production through PLI and import bans(p.338)
- • Import ban on drone CBU/SKD/CKD forms protecting domestic manufacturers(p.340)
- • Growing global demand for drones and Indian industry positioning as global competitor(p.340)
- • Streamlined IPO process and reduced timelines through UPI mechanism(p.407)
- • Expanded UPI transaction limits for broader participation(p.407)
Threats
- • Foreign investment restrictions under FDI policy limiting capital raising(p.51)
- • Demand-on-recall working capital facilities at lender discretion(p.53)
- • Economic slowdown impacting defense and civilian demand(p.64)
- • Input cost inflation eroding margins(p.59)
- • Manufacturing facility fire risk and business disruption(p.64)
- • Global financial instability and geopolitical tensions(p.64)
- • Currency depreciation increasing import costs(p.59)
- • Regulatory changes to defense procurement policies(p.57)
- • Increasing anti-China sentiment and geopolitical pressures affecting global drone market access(p.139)
- • Regulatory uncertainty and varying compliance requirements across defence and civil segments restricting commercialization(p.166)
- • Defence segment dependency with 69.15% of FY23 revenue from defence, making company vulnerable to defence procurement cycles(p.125)
- • Global drone market growth concentrated in defence (26% by 2030) with enterprise at 34%, creating market concentration risk(p.152)
- • Weather dependency, battery limitations, and airspace congestion restricting drone operational capabilities(p.166)
- • Privacy and safety concerns potentially restricting civil drone adoption and regulatory frameworks(p.166)
- • Rapid growth of Chinese drone market and competition from low-cost Chinese manufacturers(p.197)
- • Competition from established international companies including Lockheed Martin and Autel Robotics(p.213)
- • Regulatory risks and evolving drone regulations affecting operations and approvals(p.198)
- • Supply chain disruptions and component shortage risks, particularly for imported materials(p.214)
- • Dependence on government contracts and defence sector spending which is cyclical(p.178)
- • Global defence sector spending on drones expected to reduce from 48% (CY22) to 34% (CY27)(p.178)
- • Nascent stage of logistics and passenger drone applications with safety and regulatory uncertainties(p.177)
- • Regulatory risks in defense and surveillance sectors(p.251)
- • High dependency on small number of customers affecting revenue stability(p.256)
- • Volatile raw material and component costs impacting margins(p.257)
- • Foreign exchange exposure from international operations(p.261)
- • Increased competition in UAV manufacturing industry(p.263)
- • Significant dependence on Government of India as primary customer – 69.15% of FY2023 revenue(p.336)
- • Regulatory and policy uncertainties affecting defence procurement and civilian drone deployment(p.336)
- • Global drone market competition from established international manufacturers(p.335)
- • Global and domestic economic slowdown could impact demand(p.336)
- • Technology obsolescence risk from rapid innovation in drone technology(p.336)
- • High regulatory burden and lengthy approval process for new products and exports(p.338)
- • Risk of DGCA certification rejection and product abandonment after significant investment(p.338)
- • Uncertainty in obtaining export authorization from DGFT for SCOMET items(p.338)
- • Raw material supply interruption and inventory management risks(p.339)
- • Volatility in raw material costs due to global economic factors beyond company control(p.339)
- • Foreign exchange risk from USD-denominated component imports(p.367)
- • Foreign competitors may invest more heavily in R&D and achieve higher returns(p.340)
- • Regulatory risk of SEBI circulars changing post-issue(p.397)
- • Risk of offer withdrawal if minimum subscription not met(p.399)
- • Compensation liability for delays in fund unblocking(p.405)
- • Risk of fraud liability under Section 447 of Companies Act(p.423)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ankit Mehta | Promoter | 9.51% | — |
| Rahul Singh | Promoter | 9.24% | — |
| Ashish Bhat | Promoter / Promoter Selling Shareholder | 9.14% | — |
| Ankit Mehta | Promoter | 9.68% | — |
| Rahul Singh | Promoter | 9.41% | — |
| Ashish Bhat | Promoter | 9.31% | — |
| Florintree Enterprises LLP | Promoter Group | — | — |
| Celesta Capital II Mauritius | Investor/Shareholder | — | — |
| IndusAge Technology Venture Fund I | Investor/Shareholder | — | — |
| Ankit Mehta | Promoter | — | — |
| Rahul Singh | Promoter | — | — |
| Ashish Bhat | Promoter and Promoter Selling Shareholder | — | — |
| Ankit Mehta | Promoter | 28.39% | — |
| Rahul Singh | Promoter | 28.39% | — |
| Ashish Bhat | Promoter | 28.39% | — |
| Ankit Mehta | Promoter | 17.28% | — |
| Ashish Bhat | Promoter | 16.62% | — |
| Rahul Singh | Promoter | 16.79% | — |
| Ankit Mehta | Promoter | — | — |
| Ankit Mehta | Promoter | — | — |
| Rahul Singh | Promoter | — | — |
| Ashish Bhat | Promoter/Promoter Group | — | — |
| Qualcomm Asia Pacific Pte. Ltd. | Corporate Selling Shareholder | — | — |
| Celesta Capital II Mauritius | Corporate Selling Shareholder | — | — |
| Celesta Capital II-B Mauritius | Corporate Selling Shareholder | — | — |
| Export Import Bank of India | Corporate Selling Shareholder | — | — |
| Agarwal Trademart Private Limited | Corporate Selling Shareholder | — | — |
| Society for Innovation and Entrepreneurship | Corporate Selling Shareholder | — | — |
| A&E Investment LLC | Corporate Selling Shareholder | — | — |
Leadership
Ankit Mehta · Chief Executive Officer / Promoter / Whole-Time Director
Rahul Singh · Promoter / Executive Director
Ashish Bhat · Promoter / Executive Director / Promoter Selling Shareholder
Vipul Joshi · Chief Financial Officer
Srikanth Velamakanni · Chairman and Independent Director
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Ideaforge Technology IPO FAQs
What is the lot size of Ideaforge Technology IPO?
The minimum lot size of Ideaforge Technology IPO is 22 shares. One lot costs ₹14,784 at the cut-off price.
When does Ideaforge Technology IPO open and close?
Ideaforge Technology IPO opened for subscription on 26 Jun 2023 and closed on 30 Jun 2023.
What is the listing date of Ideaforge Technology IPO?
Ideaforge Technology IPO listed on 07 Jul 2023.