ideaForge, a drone technology company, raised ₹500 crore through a qualified institutional placement (QIP) by allotting approximately 62.89 lakh equity shares to qualified institutional buyers at ₹795 per share. The QIP closed on July 10, with the shares issued at a 5% discount to the floor price of ₹835.8 announced on July 7, according to inc42.com.
The fundraising committee approved the issue and allotment of shares to investors including NBFC Bengal Finance and Investment, Hara Global Capital, Arohi Asset Management, and ACM Capital Management. Mutual funds such as HDFC Mutual Fund, Mahindra Manulife, and Bandhan also participated in the QIP. Following the allotment, ideaForge’s paid-up equity share capital increased to ₹4,968.4 crore, comprising 4.96 crore equity shares, inc42.com reported.
The company plans to allocate ₹165 crore from the raised funds to address a working capital gap, ₹120 crore to repay or prepay certain outstanding borrowings, and ₹90 crore toward product development. The remaining amount will be used for general corporate purposes. ideaForge is focusing on evolving its portfolio by developing advanced offensive and logistics features for its drone technology, inc42.com noted.
ideaForge’s QIP marks a significant capital infusion as the company aims to expand its product capabilities. The company issued its QIP prospectus detailing the fund utilization and closed the placement on July 10, according to inc42.com.