Qualcomm & Infosys-backed ideaForge Tech, NBFC co Akme Fintrade file for IPO

Mumbai-based dronemaker ideaForge Technology Ltd has filed draft papers with the Securities and Exchange Board of India (Sebi) to raise Rs 300 crore through fresh issue of shares.

The IPO, with a face value of Rs 10 each, also consists of an offer for sale by promoter and institutional shareholders. These include American semiconductor maker Qualcomm, Export-Import Bank of India, and US-based venture capital firm Celesta Capital.

In total, 13 investors will sell up to 4,869,712 shares through the OFS in the public offer, according to the draft prospectus.

Florintree Advisors, led by former Blackstone India head Mathew Cyriac, is the single largest public shareholder, with a 12.4% stake. Celesta Capital is the next with a 13.4% stake.

Software major Infosys Ltd also owns a 4.4% stake in the dronemaker, according to the shareholding data on the draft prospectus.

Qualcomm owns 3.8% stake through its affiliate Qualcomm Asia Pacific Pte. Among promoters, Ashish Bhat will sell a partial stake in the IPO. He holds 16.62% stake in the company.

Proceeds from the fresh issue of shares will be utilised to repay certain outstanding loans, invest in product development, and fund working capital requirements.

As of November 2022, the consolidated debt of the company was Rs 130 crore. HDFC Bank, Axis Bank, and EXIM Bank are among the lenders to the company.

The company’s leading product portfolios are targeted at civil and defence applications.

For the six months ended September, the company reported a revenue of Rs 140 crore compared with Rs 9.6 crore a year ago. It reported a net profit of Rs 45 crore compared to a loss of Rs 21 crore a year ago.

JM Financial and IIFL Securities are the book running lead managers to the issue.

Akme Fintrade
Udaipur-based non-bank financial company Akme Fintrade (India) Ltd has also filed papers for an IPO that comprises fresh issue of 1.10 crore shares of face value Rs 10 each. The funds are being raised primarily to augment its capital base.

As per RBI norms, the minimum capital adequacy for an NBFC should be 15%. The company’s capital adequacy as of September 30, 2022, stood at 43.24%. Of this, tier-1 was 39.80%.

“As we continue to grow our loan portfolio and asset base, we will require additional capital in order to continue to meet applicable capital adequacy ratios with respect to our business,” it said in the draft prospectus.

In the coming years, the company plans to grow its loan advances, which would require tier-1 capital to comply with the applicable capital adequacy regulations.

Through the IPO, the company would have adequate capital without any further need of fresh capital in the short- to medium-term.

Gretex Corporate Services is managing the offer of the company.

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