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Ideaforge Technology Limited
IDEAFORGE·₹638 – ₹672·Opens 2023-06-26
★★★☆☆3/5
🔗 Official WebsitePrice Band: ₹638 – ₹672
Issue Size: 567.245
About the Company
What does this company do?
ideaForge Technology Limited is India's leading drone (UAV) manufacturer, incorporated in 2007. The company designs, develops and manufactures unmanned aerial vehicles (UAVs) for surveillance, mapping and industrial applications. It primarily caters to government and defence customers, with over 96% of its order book c…
IPO Details
Issue parameters, key dates and structure.
Total Issue Size
567.245
8441764
Fresh Issue
240.0
3572052
Proceeds go to company
OFS
327.245
4869712
Proceeds to selling shareholders
Reservation Structure
QIB (Qualified Institutional Buyers)
75%
Not less than 75% of Net Offer on proportionate basis; up to 60% of QIB portion allocated to Anchor Investors
NII / HNI (Non-Institutional Investors)
15%
Not more than 15% of Net Offer
RII (Retail Individual Investors)
10%
Not more than 10% of Net Offer
Products & Brands
Key offerings and brand portfolio of the company.
UAV / Drones for Surveillance: Unmanned Aerial Vehicles designed for surveillance and security applications, primarily for defence and paramilitary forces.
Financial Performance
P&L, Balance Sheet and Cash Flow — all figures in ₹ Crores.
| Particulars (₹ Cr) | FY2023 | FY2022 | FY2021 |
|---|---|---|---|
| Revenue from Operations | 1860.07 | 1594.39 | 347.18 |
| Other Income | 103.95 | 20.09 | 16.17 |
| EBITDA | 574.88 | 751.31 | -92.51 |
| EBITDA Margin | 30.9% | 47.1% | -26.6% |
| Depreciation & Amortisation | 118.58 | 72.84 | 35.81 |
| EBIT | 456.30 | 678.47 | -128.32 |
| Finance Costs (Interest) | 48.35 | 176.70 | 16.72 |
| PBT (Profit Before Tax) | 407.95 | 501.77 | -145.04 |
| Tax | 88.07 | 61.71 | 1.22 |
| PAT (Net Profit) | 319.88 | 440.06 | -146.26 |
| PAT Margin | 17.2% | 27.6% | -42.1% |
| EPS — Basic (₹) | 8.55 | 13.84 | -5.03 |
| EPS — Diluted (₹) | 8.12 | 13.13 | -5.03 |
All figures in ₹ Crores (INR). Data sourced from DRHP/RHP.
Key Financial Ratios
Valuation and profitability metrics at the IPO price.
EPS — Basic (₹)
8.55
FY2023
EPS — Diluted (₹)
8.12
FY2023
P/E Ratio
78.60
At upper band ₹672 / Basic EPS ₹8.55
RoNW (%)
9.85%
FY2023: PAT 319.88 / NetWorth 3247.21
NAV per Share (₹)
86.81
Pre-issue as stated in document
Debt/Equity
0.27
FY2023: Total Debt 865.04 / NetWorth 3247.21
EBITDA Margin (%)
30.90%
FY2023: EBITDA 574.88 / Revenue 1860.07
PAT Margin (%)
17.20%
FY2023: PAT 319.88 / Revenue 1860.07
Revenue CAGR
131.5%
2-yr CAGR FY2021-FY2023: (1860.07/347.18)^0.5 - 1
Peer Comparison
Listed peers in the same industry — compare valuation and scale.
| Company | Exchange | Market Cap | Revenue (₹ Cr) | PAT (₹ Cr) | P/E | ROE |
|---|---|---|---|---|---|---|
| Hindustan Aeronautics Limited | — | — | 26927.46 | 6509.5 | — | 27.6 |
| Bharat Electronics Limited | — | — | 17734.44 | 2986.24 | — | 21.5 |
| MTAR Technologies Limited | — | — | 573.75 | 103.42 | — | 16.7 |
| Astra Microwave Products | — | — | 815.52 | 69.83 | — | 10.9 |
| Data Patterns | — | — | 453.45 | 124.0 | — | 10.6 |
* Peer data extracted from DRHP. All figures in ₹ Crores unless stated. P/E based on latest available earnings.
Objectives of the Issue
How the company intends to use the IPO proceeds.
⚠
{"amount":"50.0","purpose":"Repayment/prepayment of certain indebtedness"}
1
{"amount":"135.0","purpose":"Funding working capital gap"}
2
{"amount":"40.0","purpose":"Investment in product development"}
3
{"amount":"0.16","purpose":"General corporate purposes"}
SWOT Analysis
Internal strengths & weaknesses; external opportunities & threats.
💪Strengths
Market leader in Indian UAV/drone manufacturing with indigenously designed products
Strong and recurring government/defence customer base providing revenue visibility
Deep R&D capabilities and continuous product innovation track record
Favourable policy environment — PLI scheme and Make in India for drones
⚠️Weaknesses
Negative operating cash flows in FY2023 and FY2021 reflecting working capital intensity
Very high working capital cycle (301 days in FY2023)
Significant dependence on imported components increasing cost and supply chain risk
Low promoter holding post-IPO (~27% promoter + promoter group)
🚀Opportunities
Rapidly expanding Indian drone market driven by defence modernisation and civil applications
Government push for indigenisation and drone-based services in agriculture, surveillance, logistics
Export opportunities as Indian drone manufacturers gain credibility globally
Growing commercial and industrial use cases for drones beyond defence
🔥Threats
Entry of well-funded global players (DJI etc.) as import restrictions ease
Regulatory changes in drone policy could impact business model
Geopolitical supply chain disruptions affecting imported components
Customer concentration risk — revenue dependent on government procurement cycles
Competitive Strengths
Key advantages highlighted in the DRHP.
✓
Market leader in India's UAV industry with a comprehensive portfolio of drone products for surveillance, mapping and industrial use
✓
Strong government customer base with over 96% of order book from government entities, providing revenue visibility
✓
Indigenously designed and developed UAVs with deep R&D capabilities, enabling continuous product innovation
✓
Experienced promoter-led management team with domain expertise in UAV technology since 2007
✓
Growing order book and established relationships with defence and paramilitary forces
✓
Favourable policy tailwinds from Indian government's 'Make in India' initiative and PLI scheme for drones
Promoters & Shareholding
Pre & post-IPO shareholding pattern. Click a promoter card to learn more.
Promoters
Shareholding Pattern
32.94%30.19%
67.06%69.81%
PrePost
Key Risks
Material risk factors to consider before applying.
⚠
Significant dependence on government/defence orders; any reduction in budget allocation or policy change could impact revenues
⚠
Negative cash flows from operating activities in FY2023 and FY2021 due to working capital-intensive business model
⚠
High dependency on imported components (motors, carbon fibre, propellers, antennas) making operations susceptible to supply chain disruptions and forex risk
⚠
Lengthy working capital cycle (301 days in FY2023) with large advances tied up in inventory and receivables
⚠
Concentrated order book with limited revenue diversification; top customers account for a significant portion of revenues
⚠
Historical losses in FY2021 and risk of future losses if order execution is delayed or costs increase
◆ Neutral
Should You Apply?
ideaForge Technology Limited is India's leading UAV/drone manufacturer primarily serving government and defence customers, with revenues growing from ₹347 million in FY2021 to ₹1,860 million in FY2023 — a 2-year CAGR of ~131%. The company reported PAT of ₹320 million in FY2023 (EPS: ₹8.55) though it posted negative operating cash flows due to its working capital-intensive business model. At the upper price band of ₹672, the IPO is priced at ~78.6x FY2023 earnings, which appears expensive given concentration in government orders, negative CFO and execution risks, warranting a neutral to cautious approach for long-term investors.
⚠️ This is not investment advice. CheckIPO provides information for educational purposes only. Always consult a SEBI-registered financial advisor before investing.
IPO Timeline
Key milestones from opening to listing.
📅
IPO Opens
2023-06-26
🔒
IPO Closes
2023-06-30
🏛️
Listing
2023-07-07
Lead Managers & Registrar
Institutions managing the issue and handling allotment.
Book Running Lead Managers (2)
JM Financial
IIFL Capital
Registrar to the Issue
📋
Link Intime India Private Limited
Registrar to the Issue
Company Details
Registered information and contact details.
Company Name
ideaForge Technology Limited
CIN
U31401MH2007PLC167669
Registered Office
EL-146, TTC Industrial Area, Electronic Zone MIDC, Mahape, Navi Mumbai, Thane 400 710, Maharashtra, India
Contact Person
Sonam Gupta
Phone
+91 226787 5000
Website
www.ideaforgetech.com