DroneAcharya AI IPO set to open next week on December 13; GMP at ₹25 per share

• DroneAcharya Aerial Innovations looks to raise nearly ₹34 crore through fresh issue of shares.
• The Pune-based company has set an IPO price band between ₹52-54 a share.
• The shares of the company will be listed on BSE SME exchange.
• The shares of the company are currently commanding a grey market premium, or GMP, of ₹25 per share.

DroneAcharya Aerial Innovations, a drone start-up based out of Pune, will offer its shares for public subscription starting from December 13. The company looks to raise nearly ₹34 crore through a fresh issue of shares via an initial public offering (IPO).

The DroneAcharya AI IPO price band is set between ₹52-54 a share. The offer will close on December 15. The shares of the company will be listed on BSE SME exchange.

The shares of the company are currently commanding a grey market premium, or GMP, of ₹25 per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

DroneAcharya Al provides a high-end ecosystem of drone solutions for multi-sensor drone surveys, data processing of drone data using robust high configuration workstations, drone pilot training and specialized GIS training.

The SME IPO lot size of the company is 2,000 shares and a retail individual investor can apply for up to 1 lot i.e up to ₹1.08 lakh.

The company has been authorised by the Directorate General of Civil Aviation (DGCA) as a Remote Pilot Training Organisation (RPTO) to conduct drone training. Since March 2022, the company has trained more than 180 drone pilots.

The net proceeds raised by the startup will be utilised to purchase and manufacture drones, sensors and processing infrastructure. Further, the company plans to open 12 new training centres by March 2023.

It has also rolled out several concise and industry-relevant Drone and GIS courses.

It aims to provide quality products and services across multiple domains such as agriculture, defence, energy, mining, infrastructure, oil and gas, smart cities, urban planning and water resources.

DroneAcharya raised as much as $4.6 million in a pre-seed funding round that closed this May. The company has a workforce of 40 employees across various departments. Around 71.56% of the drone company’s revenues are derived from clients in Maharashtra.

It informs investors in its draft prospectus that if it is unable to attract new students for its pilot training programme which may adversely affect its growth and cash flows.

Among several risks, interest rate fluctuation may also adversely affect the company’s business. “The company may enter into certain borrowing arrangements to finance its capital requirements in the ordinary course of business for general working capital purposes. In the event interest rates increase, the company's costs of borrowing will increase, and its profitability and results of operations may be adversely affected,” said the company in the draft prospectus.

The company, founded in 2017, started making revenues in FY21 with ₹1 lakh, which grew to ₹358 lakh in FY22.


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