Dronacharya Aerial Innovations on Tuesday announced that its initial public offering (IPO) will open for subscription on December 13. The three-day initial share sale will end on December 15.
The SME (Small and Medium Enterprises) IPO will offer 62.90 lakh shares (paid at Rs 10 each) through book-building process in the price band of Rs 52-54 per share.
The company also informed that out of the total shares offered, 8.98 lakh shares will be reserved for HNI category, 11.94 lakh shares for QIB quota and 20.92 lakh shares will be offered to retail investors.
Dronacharya AI said the new funds raised will be used to purchase and build drones, sensors and processing infrastructure.
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“In the pre-IPO funding, marquee investors led by Shankar Sharma along with other market experts and Bollywood personalities have taken a minority stake in the company. Mangina Srinivasa Rao (formerly associated with ITC e-Choupal and Bill & Melinda Gates Foundation, India ) ) also picked up stake,” the company said in a release.
In addition, some angel investors including Jay Viswanathan, VC Karthik and Samit Bhartia have also invested in the company.
Manish Khanna, co-founder, Unlisted Assets, said, “It looks good from a long-term perspective on the valuation front and investors should track their orderbook and execution on a quarterly basis to see their performance.”
gray market premium
According to market sources the most recent IPO GMP for Dronacharya AI is estimated to be Rs 15. The expected listing price for the SME IPO is given at a price band of Rs 54, which is Rs 69 (cap value and current estimated GMP) In percentage terms, the estimated profit per share is 27.78 per cent. The lowest reported GMP is Rs 15 and the highest recorded GMP is Rs 30, based on market sources,” Khanna said.
The book-running lead manager to the issue is Corporate Capital Ventures. The shares will be listed on the BSE SME Exchange.
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Dronacharya AI is one of the first private players to get aviation regulator DGCA-certified Remote Pilot Training Organization (RPTO) license this year. Till date, it has trained over 180 drone pilots.
The company plans to foray into the field of manufacturing customized indigenous drones and select land and underwater survey services.
In addition, the company aims to open 12 new training centers by March 2023. For Q1FY23, the company registered a total revenue of Rs 308.96 Lakh and a net profit of Rs 72.06 Lakh.