SME IPO: Drone Destination Issue to Open on July 7
Drone Destination
Drone Destination, a drone service and training company, was established approximately four years ago in 2019. The company has obtained recognition from the Directorate General of Civil Aviation (DGCA) as a Remote Pilot Training Organization.
It conducts training programs at various locations across the country, emphasizing the safe and responsible operation of drones.
The eagerly anticipated initial public offering (IPO) of Drone Destination is set to open for subscription on Friday, 7th July.
The subscription window will remain open until the following Thursday, providing investors with an opportunity to invest in the company.
It’s worth noting that only new shares will be issued under Drone Destination’s IPO, which allows investors to participate in the company’s growth prospects.
The grey market for Drone Destination’s IPO indicates a grey market premium (GMP) of Rs 108, translating to a premium of 66.15% over the upper price of the price band set for the IPO.
However, it is important to note that investment decisions should not solely rely on signals from the grey market.
Market experts emphasize the significance of evaluating the company’s fundamentals and financials before making investment decisions.
Investors can find comprehensive details related to the Drone Destination IPO, including the price band and other relevant information, in the official IPO prospectus.
Thoroughly reviewing this document and conducting due diligence on the company’s operations, financial performance, growth prospects, and industry outlook can provide valuable insights for potential investors.
As with any investment opportunity, it is essential for investors to carefully consider their risk tolerance, investment objectives, and consult with financial advisors or professionals before making investment decisions.
Assessing the company’s financial health, competitive position, and growth potential will enable investors to make informed choices when considering participation in the Drone Destination IPO.
Drone Destination IPO Details
Drone Destination’s IPO details have been announced, and the subscription period for the IPO will run from July 7th to July 13th.
The IPO aims to raise Rs 44.20 crore. As part of the offering, the company will issue 68 lakh shares with a face value of Rs 10 each. It is important to note that there will be no sale of shares under the Offer for Sale (OFS) window for this IPO.
The IPO has set a price band of Rs 62-65 per share, and the minimum lot size for bidding has been fixed at 2,000 shares.
This means that investors will have to bid for a minimum of 2,000 shares in the IPO. The allocation of shares will be made on July 18th, following the successful completion of the IPO.
The IPO has allocated 50% of the shares for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NII), and 35% for retail investors.
This allocation aims to provide a fair distribution of shares among different categories of investors.
Upon successful allotment of shares, Drone Destination’s shares will be listed on the NSE SME platform, specifically on the NSE SME Exchange.
The listing date has been set for July 21st. Maashitla Securities will act as the Registrar to the Issue, responsible for the IPO’s administrative tasks and ensuring the smooth allocation and listing process.
The funds raised through the issue of fresh shares will be utilized by Drone Destination for various purposes.
These include the purchase of new drones, vehicles, capital expenditure, meeting working capital requirements, general corporate purposes, and covering expenses related to the IPO.
About Drone Destination Company
Drone Destination is a drone service and training company that was established approximately four years ago in 2019.
The company has gained recognition from the Directorate General of Civil Aviation (DGCA) as a Remote Pilot
Training Organization, highlighting its commitment to providing high-quality training programs. Drone Destination conducts training at various locations across the country, offering comprehensive courses on drone operation and safety.
In October 2022, the company achieved a significant milestone by becoming the first drone training partner of the National Skill Development Corporation (NSDC).
This partnership further solidifies Drone Destination’s position as a trusted and recognized player in the drone training industry.
Additionally, the company has formed strategic alliances with esteemed organizations such as IGRUA, IFFCO, IIT Patna, NSDC, Neo-Geo, and Matrix-Geo, enhancing its network and expanding its reach.
Drone Destination serves a diverse range of clients from both the private and government sectors. With a portfolio of over 80 clients, the company has established itself as a reliable provider of drone services, catering to the unique requirements of different industries and sectors.
The company offers a range of drones under various brand names, including Star Guru, Star Edge, Sky Star, AgriStar, Agri Mapper, Star Eye, and Laser Star.
These drones are designed to meet specific needs, whether it be aerial photography, agriculture applications, surveillance, or other purposes.
The diverse range of drone offerings allows Drone Destination to cater to a wide array of customer requirements.
Drone Destination has displayed a strengthening financial performance over the years. In FY 2021, the company recorded a net loss of Rs 4.56 lakh.
However, the following financial year, FY 2022, saw a significant turnaround as Drone Destination achieved a net profit of Rs 20.73 lakh.
The financial success continued in the subsequent financial year, FY 2023, with the company reporting a net profit of Rs 2.44 crore.
This consistent growth in profitability showcases the company’s ability to capitalize on market opportunities and deliver sustainable financial performance.
