The initial public offering (IPO) of Ideaforge Technology, a leading manufacturer of drones and unmanned aerial vehicles (UAVs), opened for subscription today amid a volatile market. The company aims to raise Rs 588 crore through the public issue, which comprises a fresh issue of Rs 200 crore and an offer for sale of Rs 388 crore by existing shareholders. The price band for the IPO has been fixed at Rs 1,415-1,490 per share.
The IPO will close on August 11 and the shares are expected to be listed on the NSE and BSE on August 19. The company has already raised Rs 176.4 crore from anchor investors, including Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, ICICI Prudential Mutual Fund, HDFC Life Insurance Company, and SBI Life Insurance Company.
Ideaforge Technology was founded in 2007 by three IIT Bombay alumni and is backed by investors such as WRVI Venture Partners, Infosys co-founder Kris Gopalakrishnan, and Parampara Capital. The company claims to have a 90% market share in the security and surveillance segment of the Indian drone market. It also caters to sectors such as energy, mining, infrastructure, agriculture, and disaster management.
The company’s revenue from operations grew at a compound annual growth rate (CAGR) of 41.6% from Rs 35.8 crore in FY19 to Rs 63.6 crore in FY21. Its profit after tax increased from Rs 3.4 crore in FY19 to Rs 17.1 crore in FY21, registering a CAGR of 121.9%. The company’s order book stood at Rs 237.9 crore as of June 30, 2021.
Adani Wilmar shares decline despite strong Q1 earnings
Shares of Adani Wilmar, the joint venture between Adani Group and Singapore-based Wilmar International, fell by 2.5% today to close at Rs 387.65 on the NSE. The stock has been under pressure since last week, when a report by Hindenburg Research alleged accounting frauds, stock manipulations and money laundering by the Adani Group.
The report claimed that Adani Wilmar was overvalued by more than 100 times its net income and that its auditor had resigned due to “significant deficiencies” in its financial reporting. The report also accused the company of inflating its sales and profits by booking inter-company transactions with related parties.
Adani Wilmar has refuted the allegations and said that the report was “malicious, motivated and baseless”. The company said that it follows the highest standards of corporate governance and complies with all the applicable laws and regulations.
The company reported a strong performance for the quarter ended June 30, 2021, with its revenue from operations rising by 52% year-on-year to Rs 12,975 crore and its net profit surging by 114% year-on-year to Rs 375 crore. The company attributed the growth to higher volumes and better margins in its edible oil, food and agri businesses.
Adani Wilmar is the largest edible oil player in India with a market share of over 20%. It also produces other products such as rice, wheat flour, pulses, sugar, soya chunks and biodiesel. The company is planning to launch an IPO later this year to raise around Rs 4,500 crore.
GSFC shares slump on weak Q1 results
Shares of Gujarat State Fertilizers & Chemicals (GSFC), a state-owned manufacturer of fertilizers and chemicals, slumped by 7.4% today to close at Rs 113.65 on the NSE. The stock was dragged down by disappointing results for the quarter ended June 30, 2021.
The company’s revenue from operations declined by 9% year-on-year to Rs 1,559 crore and its net profit plunged by 66% year-on-year to Rs 54 crore. The company’s earnings were impacted by lower sales volumes and higher raw material costs.
The company’s fertilizer segment reported a revenue of Rs 853 crore, down by 16% year-on-year, and a segment loss of Rs 13 crore, compared to a segment profit of Rs 82 crore in the same quarter last year. The company’s chemical segment reported a revenue of Rs 706 crore, up by 2% year-on-year, and a segment profit of Rs 67 crore, down by 49% year-on-year.
The company’s performance was also affected by the second wave of the COVID-19 pandemic, which disrupted its operations and logistics. The company said that it expects the demand for fertilizers and chemicals to improve in the coming quarters as the monsoon season progresses and the vaccination drive picks up pace.