IdeaForge shares jump over 5% from day’s low on JV with US firm to manufacture drones – News Air Insight

Shares of IdeaForge Technology rose 5% from the day’s low to Rs 551 per share on the NSE on Wednesday, September 24, after the company announced a joint venture (JV) with US-based First Breach Inc.

The deal, struck through ideaForge’s wholly owned US arm, aims to strengthen its presence in the lucrative American drone market by licensing, designing, manufacturing, and distributing specific unmanned aerial vehicles (UAVs) in the United States, the company said in a regulatory filing on September 24.

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The proposed entity, named First Forge Technology Inc., will have equal ownership between ideaForge and First Breach, each holding a 50% stake. IdeaForge’s contribution comes in the form of intellectual property and technical know-how, while First Breach will bring in cash investment.

The board representation will also be equal, with two directors from each side. The Mumbai-based drone company said the JV’s formation is subject to satisfactory completion of due diligence and relevant regulatory approvals in the US. The joint venture is expected to be incorporated by the end of financial year 2025-26.

The promoters of ideaForge continue to hold a 33.37% stake in the subsidiary, while the transaction itself does not fall under related party transactions as defined by SEBI. With this move, ideaForge is looking to leverage its technology strengths and First Breach’s infrastructure and market access to ramp up its footprint.Financial details of the JV were not disclosed in the press statement, and turnover for the new entity cannot be determined at this stage, according to the company.

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First Breach Inc., a Delaware corporation incorporated under the laws of Delaware, United States of America, and having its registered office at 18450 Showalter Road, Bay 1, Hagerstown, Maryland 21742.

At about 1:15 am, shares of the company were trading at Rs 540.5, higher by 1.5% from the last close on the NSE. ideaForge Technology shares have risen 38% in the last six months.

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