ideaForge Shares Hit Upper Circuit As Board Approves ₹500-Cr Fundraise

Shares of ideaForge Technology were locked in the 5% upper circuit on Thursday after the company approved a plan to raise up to ₹500 crore through multiple fundraising avenues.

The stock rose 5% to ₹900 after the drone manufacturer informed exchanges that its board had approved raising funds through one or more permissible routes, including a qualified institutional placement (QIP), preferential allotment, private placement or other approved methods.

According to the exchange filing, the fundraising may be undertaken in one or more tranches through equity shares, preference shares, convertible or non-convertible debentures, warrants or a combination of instruments.

₹500-Crore Fundraise

The company said it has constituted a Fundraising Committee to determine the final structure, timing and terms of the proposed issue.

The approval also includes a greenshoe option, allowing the company to increase the issue size in the event of strong investor demand.

While ideaForge did not disclose a timeline for the capital raise, the move comes at a time when investor interest in India's defence and drone ecosystem is strengthening.

The fundraising announcement follows expectations of increased domestic defence procurement. According to a Reuters report, India could place military drone orders worth more than ₹20,000 crore with local manufacturers this year as the government accelerates indigenous defence sourcing.

Strong Q4 Performance

The company recently reported a sharp turnaround in its March quarter earnings. ideaForge posted a net profit of ₹60 crore in Q4FY26, compared with a net loss of ₹26 crore in the corresponding quarter last year.

Revenue surged more than seven-fold to ₹141 crore from ₹20 crore a year earlier, supported by stronger execution of defence-related orders.

EBITDA stood at ₹62 crore against an EBITDA loss of ₹22 crore in the year-ago period. The company said 86% of its fourth-quarter revenue came from the defence segment, with the balance contributed by civil applications.

ideaForge also indicated that it is expanding into the combat drone segment to tap future procurement opportunities from the Indian armed forces.

Brokerages Turn Positive

Following the earnings announcement, brokerage firm IIFL upgraded the stock to "Buy" from "Reduce" and sharply raised its target price to ₹1,187 from ₹271.

The brokerage cited improving execution, a stronger order pipeline and the company's return to profitability as key reasons behind the upgrade.

With Thursday's gain, ideaForge shares have surged nearly 94% so far in 2026 and have more than doubled from their 2026 low of around ₹370.