Pune based Sagar Defence Engineering has raised Rs 300 crore (about $33 million) in a pre-IPO round from domestic institutional investors, the company said on 6 November. The round values the deep-tech company at Rs 20,000 crore before the new money, or about $2.2 billion. The investors were not named.
SEBI clearance opens the way to a public listing
The raise follows the market regulator clearing the company’s draft IPO papers. The Securities and Exchange Board of India issued its final observations on 4 November. Sagar Defence had filed its draft papers through the regulator’s confidential pre-filing route in August.
The proposed public issue has been estimated at around Rs 3,000 crore. It is expected to combine a fresh issue of shares with an offer for sale by existing shareholders. The shares are planned to list on the BSE and the NSE.
Sagar Defence is not the only company moving toward a listing after SEBI clearance. Atomberg recently received SEBI approval for a Rs 450 crore fresh issue ahead of its IPO.
Under the confidential filing route, the company has 18 months from the observations to open its public issue. That window gives it room to pick its timing rather than rush to market.
What the money is for
The funds will support research and development, autonomous systems, advanced manufacturing and indigenous technology capabilities. The company is expanding its manufacturing and research infrastructure in Pune. It is also building an Autonomous Systems Shipyard and a Maritime Systems Research Centre in Andhra Pradesh.
From a 150 sq ft room to Navy contracts
Capt. Nikunj Parashar founded Sagar Defence in 2015 with co-founders Mridul Babbar, Lakshay Dang, Saurabh Patil and Ankit Kumar. Parashar spent more than a decade in shipping operations and commanded merchant ships before starting the company. The team began in a 150 sq ft workspace in Mumbai.
The journey was highlighted at Swavlamban 2026, the Indian Navy’s fifth Naval Innovation and Indigenisation Seminar, held in New Delhi on 26 and 27 October. The event brought together the armed forces, startups, small enterprises, researchers and industry stakeholders around indigenous defence innovation.
“We have received SEBI’s final observations and have successfully concluded our pre-IPO fundraising round, raised ₹300 crore. At this stage, I am not in a position to comment further.”
Capt. Nikunj Parashar, founder and chief executive of Sagar Defence Engineering
The boats, the drones and the software
Sagar Defence builds unmanned marine surface vessels, aerial drones and the autonomy software that runs them. Its Genesis system turns a remotely operated vessel into one that navigates, avoids collisions and plans missions on its own. The same technology serves defence, oil and gas, survey and disaster response work.
Its best known vessel is Matangi, an armed autonomous boat now being supplied to the Indian Navy. Under the Navy’s iDEX SPRINT contract, the company is delivering 12 of the craft. Each carries a 12.7mm stabilised remote-controlled gun station, electro-optical radar tracking and anti-jamming GPS navigation.
Matangi proved its autonomy in November 2024, when it sailed about 850 nautical miles from Mumbai to Thoothukudi without a crew aboard. The voyage, named Sagarmala Parikrama, covered roughly 1,500 kilometres. Some of the boats have also been deployed at Pangong Tso lake in eastern Ladakh for Army patrolling.
The product range runs wider than boats. Sagar Defence builds multi-payload quadcopters and hexacopters in its Spectre and Varuna series, plus a Maritime Spotter Drone designed to land on moving warships. It has also unveiled Tandav, a modular autonomous vessel platform, and AquaScan, an AI vision device for divers.
The company is also working with the Defence Research and Development Organisation on an underwater-launched drone, a project it won from a field of 17 companies. It has partnered with Israel Aerospace Industries on a precision strike missile for India.
It also works with Liquid Robotics, the Boeing subsidiary, on unmanned surface vessel systems for maritime security. The two companies announced work together in 2024 and 2025 to scale the systems for maritime security.
A business with revenue, not just prototypes
Sagar Defence already earns revenue, which sets it apart from many defence startups. Corporate records show about $4.68 million in revenue for the year ended March 2024. Its earlier backers include ONGC, IDBI Capital and Skegen.
The company also holds an industrial licence for the manufacture of arms and explosives, received in 2026. The licence widens what it can build in India rather than import. That matters because defence technology needs sustained spending on research, testing and manufacturing before it can scale.
The global peer group shows the scale of the opportunity. American unmanned systems companies such as Anduril, Saronic and Saildrone operate at considerably larger scale. Sagar Defence is the Indian company trying to close that gap from a much smaller base.
Indian drone startups are drawing fresh capital across the board. KeeVurds recently covered Cellegant, which raised Rs 26.1 million for hydrogen powered drones with backing from GVFL.
For now, the pre-IPO round gives Sagar Defence fresh capital and a public market valuation before it lists. The next test is the IPO itself, and whether the order book matches the Rs 20,000 crore price tag.
