Drone manufacturer IdeaForge has announced the acquisition of Series A Compulsory Convertible Preference Shares (CCPS) in Bengaluru-based spacetech startup GalaxEye Space Solutions for INR 8.28 crore.
The deal, inked on July 10, 2024, was disclosed in a regulatory filing submitted to BSE Limited and the National Stock Exchange of India Limited.
The acquisition is aimed at leveraging GalaxEye’s expertise to develop advanced drone-based sensors capable of penetrating fog and foliage.
This strategic move is expected to open new use cases and business opportunities for IdeaForge in sectors requiring advanced sensing solutions.
GalaxEye Space Solutions, an IIT Madras incubated startup, was founded in 2021 by Suyash Singh, Denilm Chawda, Pranit Mehta, and Rakshit Bhatt.
The company is developing the world’s first multi-sensor imaging satellite to provide geospatial analyses for governments, defense, and various industries.
In the regulatory filing, IdeaForge outlined that the acquisition is a cash consideration deal worth INR 8,28,72,720.
The company also clarified that this transaction does not fall within related party transactions and no controlling stake is involved.
Founded in 2007, IdeaForge, a leading UAV systems manufacturer, caters to sectors such as defense, homeland security, mining, construction, agriculture, energy, and utilities.
The company’s drones are used for inspection, surveillance, and mapping applications.
This acquisition is part of IdeaForge’s broader strategy to enhance its technological capabilities and expand its market reach.
The company’s shares saw a 5.03% increase, trading at INR 834.40 on the BSE at the end of Thursday trading session, following the announcement.
IdeaForge has been actively pursuing growth and expansion, including the recent expansion of its ESOP pool size and plans to enter the US market to capitalize on opportunities arising from America’s reluctance to purchase drones from China.
Despite a 30% decline in consolidated profit after tax to INR 10.3 crore in Q4 FY24, the company reported a 12.6% increase in operating revenue to INR 102.3 crore for the same period, marking a 164% year-on-year increase.
