ideaForge Technology sets IPO price band at Rs 638-672 per share: Check launch date and other key details

ideaForge Technology Ltd, India's largest drone manufacturer, is all set to make a splash in the stock markets with its initial public offering (IPO), which is going to open on June 26. The company's IPO has sparked significant interest among investors, with the set price band falling between Rs 638 and Rs 672 per share.

ideaForge Technology aims to raise Rs 567 crore from the offering, which is a mix of a fresh issue of equity shares worth Rs 240 crore and an offer for sale of equity shares worth Rs 327 crore. Ahead of the opening of the public subscription, an anchor investor allocation round will be held on June 23.

The IPO is set to open for subscription to retail individual investors (RIIs), non-institutional investors (NIIs), and qualified institutional buyers (QIBs) on June 26. It will remain open for subscription until June 29. In terms of reserved shares, 75 per cent of the issue has been marked for QIBs, 15 per cent for NIIs, and another 10 per cent for retail investors.

Notably, ideaForge's impressive roster of investors includes renowned tech giants Infosys and Qualcomm, as well as Florintree, Celesta, and others. The listing of ideaForge Technology shares is expected on July 7, following the finalisation of the allotment on July 4.

The company specialises in manufacturing unmanned aircraft systems and primarily serves customers in the surveillance, mapping, and surveying sectors. This includes the armed forces, police departments, and disaster management agencies. The company holds a significant market share in India's drone technology landscape.

The proceeds from the IPO will be allocated towards debt repayment, bolstering working capital, product development, and addressing general corporate purposes. As the company scales, such funds will prove crucial in sustaining the momentum of their innovation and growth.

ideaForge has shown strong financial health, having raised approximately Rs 60 crore in a pre-IPO round from institutional investors. As a result, the fresh issue size was reduced from the initially planned Rs 300 crore to Rs 240 crore. The funds received from the pre-IPO round will be used for general corporate purposes and growth initiatives.

The ideaForge IPO comprises a reservation of shares worth Rs 2 crore for employees, demonstrating the company's commitment to its team and its vision for inclusive growth. Employees will have the option to apply for shares at a discount to the final issue price.

Market analysts anticipate strong investor interest in IdeaForge's IPO due to the company's dominant position in India's drone market, a sector that is expected to grow exponentially over the coming years. As unmanned aerial vehicles (UAVs) continue to find diverse applications in sectors ranging from agriculture to delivery services, the company's comprehensive portfolio of drone technology is well-positioned to capitalise on this emerging market trend.

Axis Capital Limited, ICICI Securities Limited, and IIFL Securities Limited are the book running lead managers for the issue. The registrar for the IPO is KFin Technologies Private Limited.