Droneacharya Aerial IPO sees massive demand, subscribed 6 times in 4 hours

The BSE SME IPO has made its debut in grey market as well. According to market observers, Droneacharya Aerial Innovations shares are available at a premium of ₹65 in grey market today.

Droneacharya Aerial Innovations IPO subscription status

By 1:36 PM on day 1 of bidding, the public issue has been subscribed 6.76 times whereas its retail portion has been subscribed 12.91 times. In NII category, the BSE SME IPO has been subscribed 2.82 times.

Droneacharya Aerial Innovations IPO GMP today

According to market observers, Droneacharya Aerial Innovations IPO grey market premium (GMP) today is ₹65, which is 120 per cent higher from its price band of ₹52 to ₹54 per equity share. This means grey market is expecting that an allottees money will get doubled on the listing date of this public issue.

Droneacharya Aerial Innovations IPO review

Giving subscribe tag to this IPO for long term, Manish Khanna, Co-founder at Unlisted Assets said, “The Company is a Directorate General of Civil Aviation (DGCA) authorized Remote Pilot Training Organisation (RPTO) offering training in drone construction, aerial cinematography, data processing, Python for GIS, drones in agriculture, drones for disaster management, and lastly droneracing. They offer drone surveys, data processing, instruction, and the creation of locally made, customized drones. It has expanded its offerings from a singular upskilling course to a bunch of eight courses that can develop an individual for end-to-end data delivery. The Company aspires to start producing drones that are 100% indigenous and customized. Since March 2022, the company has trained more than 180 drone pilots.”

On whether one should apply for the IPO or not, Manish Khanna said, “On the valuation front, it looks good from long-term perspective and investors should track their orderbook and execution on quarter on the quarter basis to watch their performance.”

Shankar Sharma, other investors back this company

In pre-IPO funding, marque investors led by Shankar Sharma and other well-known market mavens and celebrities have picked a minority stake in the company.

Shankar Sharma adds, “Given Prime Minister Narendra Modi’s vision to make India a global drone hub, we have invested in drone services and pilot training start-up Droneacharya. Further, drones are being widely used in the country across industries for surveys, deliveries and surveillance, and this segment is expected to perform strongly in the coming years. We see a great value creation as the company has within a very short span been able to scale up its operations and has dynamic plans ahead.”

Besides Shankar Sharma, Mangina Srinivas Rao (Previously associated with ITC e-Chaupal and Bill and Melinda Gates Foundation, India) have also have picked up a stake in the company. In addition, a few angel investors, including Jay Vishwanathan, VC Kartik and Samit Bhartia, have also invested in the company. Jay Vishwanathan is amongst the early pioneers of private equity in India, while Samit Bhartia is the brother of Amit Bhartia, an ex-Partner at GMO.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.