Drone Destination IPO Listing: 65% Listing Gain Reduced, Lower Circuit Under Selling Pressure
Drone Destination IPO Listing
Drone Destination IPO Listing: Shares Surge with a Stellar Entry on NSE SME
The highly anticipated Drone Destination IPO has made a triumphant entry into the market, leaving investors exhilarated.
The IPO subscription, which took place between July 7 and July 13, received an overwhelming response, particularly from retail investors, as the issue was subscribed an astounding 192 times.
Upon its listing on NSE SME (National Stock Exchange’s Small and Medium Enterprises platform), Drone Destination’s shares were introduced at a price of Rs 107.45, showcasing a remarkable increase from the IPO issue price of Rs 65.
This listing gain translated into an impressive surge of over 65 percent, providing early investors with significant profits right from the outset.
However, as expected with such explosive initial listing gains, some selling pressure has crept into the market, leading to a slight correction in Drone Destination’s share price.
Presently, the shares are trading at Rs 102.10, resulting in IPO investors still enjoying a remarkable profit of 57 percent on each share they acquired during the IPO.
It is noteworthy to mention that the share price has currently hit the lower circuit, implying that the selling pressure has been substantial, possibly due to some profit-taking by early investors.
Nonetheless, the overall sentiment surrounding Drone Destination remains optimistic, given its stellar performance in the market and the tremendous confidence retail investors have shown in the company.
Drone Destination, being a renowned drone company, is likely to attract continued attention from investors and analysts alike, as its technology and services continue to gain prominence in various industries.
As the company navigates through the volatile early days of its public trading, market participants eagerly await its future developments and growth trajectory.
Please note that the financial markets are subject to fluctuations, and share prices may change rapidly. Investors are advised to conduct thorough research and seek professional advice before making any investment decisions.
Retail Investors Show Enthusiasm in Drone Destination IPO
Drone Destination’s IPO, which remained open for subscription from July 7 to July 13, witnessed an overwhelming response from retail investors, highlighting their fervent interest in the company’s prospects.
The issue was heavily oversubscribed, with an overall subscription rate of an impressive 191.65 times.
The breakdown of subscription among different investor categories reveals the significant demand from various segments of the market. Qualified Institutional Investors (QIB) showed considerable interest, with their share being subscribed 50.46 times.
Non-Institutional Investors (NII) displayed even greater enthusiasm, oversubscribing their share by a substantial 243.85 times.
However, the most remarkable response was from retail investors, who fervently subscribed to their reserved share at an extraordinary rate of 250.09 times.
The IPO exclusively offered new shares, with the company issuing 68 lakh shares, each with a face value of Rs 10, at a price of Rs 65 per share. The remarkable subscription rate allowed Drone Destination to successfully raise funds through this IPO.
The capital generated from the issue will be deployed to fuel various strategic initiatives, including the acquisition of new drones and vehicles, capital expenditure for expanding operations, meeting working capital requirements, funding general corporate purposes, and managing expenses associated with the IPO.
The strong demand from retail investors reflects their confidence in the company’s growth potential and its role in the booming drone industry.
As Drone Destination embarks on its journey as a publicly-listed entity, it will likely have the necessary resources to execute its expansion plans and capitalize on emerging opportunities in the market.
However, potential investors should exercise caution and conduct thorough due diligence before making any investment decisions.
The financial markets are subject to inherent risks, and share prices can fluctuate significantly. Seeking guidance from financial advisors and studying the company’s prospectus and financials can aid in making well-informed
Details about Drone Destination: A Promising Drone Service and Training Company
Drone Destination, a pioneering drone service and training company, was established approximately four years ago in 2019. Since its inception, the company has made significant strides in the drone industry, earning recognition from the Directorate General of Civil Aviation (DGCA) as a Remote Pilot Training Organization.
This acknowledgment allows Drone Destination to conduct drone training programs at multiple locations across the country.
The company’s commitment to excellence and professionalism has garnered prestigious partnerships and affiliations.
In October 2022, Drone Destination achieved a milestone by becoming the first-ever drone training partner of the National Skill Development Corporation (NSDC). This association further solidifies the company’s position in the drone training domain.
Among its notable collaborations are partnerships with IGRUA (Indira Gandhi Rashtriya Uran Akademi), IFFCO (Indian Farmers Fertiliser Cooperative Limited), IIT Patna (Indian Institute of Technology Patna), NSDC, Neo-Geo, and Matrix-Geo.
These partnerships have facilitated the company’s expansion and access to diverse resources, contributing to its success in the industry.
With a well-established presence, Drone Destination boasts a substantial clientele comprising more than 80 government and private sector clients.
This widespread adoption of their drone services underscores the company’s reputation for quality and reliability in the market.
Drone Destination offers a range of drone models, each catering to specific needs and applications. The company’s drone products are marketed under various brand names, including Star Guru, Star Edge, Sky Star, AgriStar, Agri Mapper, Star Eye, and Laser Star. This diverse product lineup enables them to serve various industries and sectors efficiently.
Financially, the company has exhibited commendable growth and resilience. In FY 2021, it reported a net loss of Rs 4.56 lakh, which was subsequently turned around in the following financial year 2022, yielding a net profit of Rs 20.73 lakh.
Remarkably, in the most recent financial year 2023, Drone Destination’s financial performance soared, with a substantial net profit of Rs 2.44 crore.
This upward trend in profitability showcases the company’s ability to adapt, grow, and capitalize on market opportunities effectively.
As Drone Destination continues to thrive in the drone industry, its commitment to innovation, partnerships, and professional training will likely contribute to its continued success.
However, potential investors should remain vigilant and analyze the company’s business strategies, competitive landscape, and overall market conditions before making investment decisions.
