ideaForge raises ₹500 crore via QIP; here's how the defence stock reacted

Snapping a two-session gaining streak, shares of ideaForge Technology fell up to 4% on Tuesday, in line with the broader market, after the drone technology company announced the successful completion of its ₹500-crore qualified institutional placement (QIP).

The ideaForge share price declined as much as 3.85% to an intraday low of ₹876 on the BSE before recovering some losses to settle 0.67% lower at ₹905, taking the company's market capitalisation to ₹4,496.55 crore.

In the past two session, the defence stock rose nearly 7%. On Monday, ideaForge shares gained 1.82%, extending Friday's 5% upper circuit rally after the company's board approved the QIP.

In an exchange filing today, ideaForge said it has raised ₹500 crore through the issue, which witnessed strong participation from marquee domestic and global institutional investors. It allotted 62,89,308 equity shares with a face value of ₹10 each at an issue price of ₹795 apiece, a discount of ₹40.86, or 4.89%, to the Sebi-determined floor price.

“The QIP witnessed a strong response from marquee domestic and international institutional investors reflecting their confidence in the Company’s long-term strategy, leading position in the unmanned sector, and growth prospects,” it said in a release.

Among the investors allotted shares were HDFC Mutual Fund-HDFC Defence Fund, Arohi Emerging India Master Fund, Bandhan Infrastructure Fund, Franklin India Small Cap Fund, ACM Global Fund VCC, HARA Global Master Fund Ltd, along with several other institutional investors.

The company said it will utilise the proceeds to fund its next phase of growth and strengthen its working capital position.

"The successful completion of this QIP is a testament to the confidence that institutional investors have in ideaForge's long-term direction and in the overall growth of the drone and deeptech industry," said Ankit Mehta, co-founder and CEO of ideaForge Technology.

Mehta said the fresh capital will help the company accelerate innovation, expand its product portfolio and scale execution as unmanned systems become increasingly important for national security, public safety and critical infrastructure.

“Our continued investment in indigenous innovation is aimed at building trusted sovereign unmanned systems that can address the evolving needs of defence, homeland security and critical infrastructure, both in India and globally," he added.

Building on its intelligence, surveillance and reconnaissance (ISR) capabilities, ideaForge is expanding into combat drones, logistics platforms, autonomous mission systems and technologies designed to operate in contested electronic warfare environments. The company said it remains focused on developing indigenous, sovereign unmanned systems for defence, homeland security and critical infrastructure applications in India and overseas.

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