ideaForge Technology Limited deploys Rs 20.85 crore QIP

ideaForge Technology Limited had utilised Rs 20.85 crore of net qualified institutional placement, or QIP, proceeds by September 30, 2026, including the full Rs 12 crore earmarked for repayment or prepayment of certain loans. The company raised Rs 50 crore in July and reported Rs 27.61 crore as unutilised across its remaining stated objects.

How much of ideaForge's QIP proceeds had been used?

ideaForge had used Rs 20.85 crore from Rs 48.50 crore of net QIP proceeds as at September 30, 2026. The company raised gross proceeds of Rs 50 crore on July 10, 2026 by allotting 62,89,308 equity shares of face value Rs 10 each at an issue price of Rs 795 per share, including a share premium of Rs 785 per share.

The QIP was raised for four disclosed purposes: repayment or prepayment of certain outstanding borrowings, including accrued interest; funding a working-capital gap; investment in product development; and general corporate purposes. The utilisation update covers the period from the July 10 allotment to September 30, a period of less than three months.

ideaForge separately said it used Rs 1.1456 crore of QIP proceeds for issue-related expenses during the quarter. A further Rs 35.44 lakh of such expenses remained unutilised at September 30 and will be used in accordance with the placement document. The company said offer-related expenses were adjusted against securities premium under Section 52 of the Companies Act, 2013.

The QIP utilisation schedule is presented net of Rs 1.50 crore of allocated issue-related expenses. The reported utilisation of Rs 20.85 crore represented about 43% of the Rs 48.50 crore available for the four stated objects. The filing does not disclose a timetable for spending the remaining proceeds beyond stating the permitted uses.

Did ideaForge complete the QIP loan-repayment allocation?

ideaForge had fully utilised the Rs 12 crore allocated for repayment or prepayment of certain loans by September 30, 2026. It was the only one of the four QIP objects for which the reported utilisation equalled the full allocation, leaving no balance under that stated purpose.

The standalone cash-flow statement records repayment of a short-term secured bank loan of Rs 7.2131 crore during the six months ended September 30, 2026. It also records interest paid of Rs 28.53 lakh in the period. The QIP note allows proceeds to be used for certain outstanding borrowings and interest accrued on them, but it does not identify individual loan facilities financed through the QIP.

The standalone balance sheet showed current borrowings of Rs 7.2131 crore at March 31, 2026. No corresponding current-borrowings amount is displayed for September 30, 2026 in the statement. The company does not provide a facility-by-facility reconciliation between the Rs 12 crore QIP allocation, the loan repayment shown in cash flow, and any interest or other borrowing-related payment within the QIP object.

The disclosed comparison is therefore limited: Rs 12 crore was reported as utilised for the loan-repayment purpose, while the cash-flow statement separately reports Rs 7.2131 crore of short-term secured bank-loan repayment. The difference cannot be assigned to a specific facility, interest component, or payment from the supplied filing.

Where are ideaForge's remaining QIP proceeds allocated?

ideaForge reported Rs 27.61 crore as remaining under working capital, product development and general corporate purposes at September 30, 2026. Working capital had the largest original allocation of Rs 16.50 crore, while product development had the lowest reported utilisation among the three remaining objects.

The company had used Rs 6.5419 crore for its working-capital gap, leaving Rs 9.9581 crore in that category. It had used Rs 1 crore from the Rs 9 crore product-development allocation, leaving Rs 8 crore. General corporate purposes had recorded Rs 1.31 crore of utilisation against an Rs 11 crore allocation, with Rs 9.69 crore reported as unutilised.

Working capital accounted for Rs 6.5419 crore of the non-debt spending reported in the schedule, compared with Rs 1 crore for product development and Rs 1.31 crore for general corporate purposes. The filing does not specify inventory purchases, receivables funding, research programmes, or individual corporate expenditures financed under these headings.

The deployment pattern shows that loan repayment came before most planned spending under the other three categories. Of the Rs 20.85 crore reported as utilised, Rs 12 crore was assigned to debt repayment. The remaining spending was split among working capital, product development and general corporate purposes, while most funds in those categories remained available at the reporting date.

What did ideaForge report for the September quarter?

ideaForge reported revenue from operations of Rs 9.1285 crore for the quarter ended September 30, 2026, compared with Rs 6.8417 crore in the June 2026 quarter and Rs 4.161 crore in the quarter ended September 30, 2025. Profit after tax was Rs 17.8 lakh for the September quarter, compared with a loss after tax of Rs 1.53 crore a year earlier.

For the six months ended September 30, 2026, revenue from operations was Rs 15.9702 crore, compared with Rs 5.445 crore in the corresponding six months of 2025. The pre-tax loss narrowed to Rs 38.10 lakh from Rs 3.8084 crore. These results cover the same half year in which the company completed the QIP allotment and reported the first utilisation update.

The September-quarter result included a change in the depreciation method for property, plant and equipment. ideaForge changed from the written-down-value method to the straight-line method during the June 2026 quarter, saying the new method better reflected expected consumption of future economic benefits. The change reduced September-quarter depreciation by Rs 46.9 lakh and increased pre-tax profit by the same amount.

The company also reversed Rs 60.43 lakh of excess tax provision relating to prior years in the June quarter after completion of assessments. ideaForge identifies manufacture and marketing of unmanned aerial vehicle, or UAV, systems for security and surveillance as its single operating segment under Indian Accounting Standard 108.

How did cash and working-capital balances change after the QIP?

ideaForge's standalone cash and cash equivalents were Rs 8.1973 crore at September 30, 2026, compared with Rs 2.6371 crore at March 31, 2026. Bank balances other than cash and cash equivalents rose to Rs 9.9611 crore from Rs 34.59 lakh over the same period.

Inventories increased to Rs 15.0781 crore at September 30 from Rs 13.8792 crore at March 31. Trade receivables rose to Rs 16.1171 crore from Rs 12.7013 crore. The cash-flow statement reported Rs 3.5397 crore of cash used in the increase in trade receivables during the six months, compared with Rs 1.5428 crore in the prior-year period.

The six-month cash-flow statement also reported net cash generated from financing activities of Rs 40.9511 crore, compared with Rs 2.5091 crore a year earlier. It included Rs 50.0052 crore of proceeds from issue of equity shares, Rs 1.1456 crore of equity-issue expenses, and Rs 7.2131 crore of short-term secured bank-loan repayment.

Conclusion

ideaForge used Rs 20.85 crore of its Rs 48.50 crore net QIP proceeds by September 30, 2026, completing the Rs 12 crore allocation for repayment or prepayment of certain loans. Working capital received the largest allocation outside debt repayment, while product development and general corporate purposes had relatively limited reported utilisation. The company also reported higher revenue in both the September quarter and first half, alongside a narrower six-month pre-tax loss.

The next utilisation disclosure should show how ideaForge uses the reported Rs 9.96 crore remaining for working capital, Rs 8 crore for product development and Rs 9.69 crore for general corporate purposes. The company also said the remaining Rs 35.44 lakh of issue-related expenses would be used in accordance with the placement document, while the disclosed QIP objects continue to govern the remaining proceeds.