Is the ideaForge IPO oversubscription justified?

The drone maker’s share sale is skewed towards providing existing investors with an exit, at a time when the company needs all the cash it can get for growth.

April 2023 brought good tidings for ideaForge, India’s largest (by revenue) and oldest pure-play drone manufacturer. Six drone makers received production-linked incentives from the government, and ideaForge was one of them. 

There had been significant excitement around India’s drone sector preceding the disbursement—in the 2021-22 Union Budget, the finance minister introduced “Drone Shakti”, meant to establish “Drone as a service Model (DRaaS) to help unify India's fragmented drone industry and encourage collaboration between manufacturers and service providers”. In the next budget, she said the Ministry of Civil Aviation would take up DRaaS with 15 identified union ministries, facilitate faster clearances, …

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Ujval Nanavati

Ujval leads our Business vertical at The Morning Context. In a corporate career spanning 14 years, he has worked across startups, consulting firms, multinational corporations and large Indian companies, including India Infoline, ICICI, KPMG, Tata Steel and Jubilant Pharma. Ujval has been a freelance writer and trainer for eight years, with bylines in Forbes India and The Economic Times.

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ujval@mailtmc.com

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