ideaForge rises 4% on forming JV with First Breach to make drones in US

ideaForge Technology shares rose 3.6 per cent on BSE,logging an intra-day high at ₹552.55 per share. At 12:57 PM, ideaForge Technology’s share price was trading 0.59 per cent higher at ₹536.2 per share on BSE. In comparison, the BSE Sensex was down 0.29 per cent at 81,860.86.

 

The company’s market capitalisation stood at ₹2,320.05 crore. The stock’s 52-week high was ₹718 per share, while its 52-week low was ₹301.

Why were ideaForge Technology shares surging?

The buying on the counter came after the company entered into a joint venture agreement (JVA) with First Breach Inc. (FB). Under this agreement, ideaforge and First Breach will establish a JV in the United States (US) to handle the licensing, sourcing, design, engineering, manufacturing, and distribution of specific ideaForge unmanned aerial vehles (UAVs), along with other mutually agreed activities.

 

The formation of the JV is subject to completion of due diligence and receipt of necessary regulatory and statutory approvals.

 

Both IdeaForge and First Breach will equally hold shares representing 50 per cent of the JV formed and have the right to appoint two directors each on the board of directors of the JV.

 

That apart, in June, ideaForge Technology has secured an order worth about Rs 137 crore for hybrid mini unmanned aerial vehicle systems from the Indian Army through the emergency procurement route, the company said on Monday.

 

ideaForge said a key requirement during the assessment for the selection of UAV was that all critical sub-components must be sourced from non-border-sharing nations, and that the platform be substantially indigenous in capability and design.

 

ideaForge is the pioneer and the pre-eminent market leader in the Indian unmanned aircraft systems (UAS) market. The company had the largest operational deployment of indigenous UAVs across India, with an ideaForge-manufactured drone taking off every five minutes for surveillance and mapping on average. The company's UAVs are equipped with industry leading specifications and capabilities, comparable to those of other established global players in the UAV industry.