Drone Destination IPO review at a Glance
- Drone Destination IPO Details
- Subscription for this SME IPO is opens – 7 July to 11 July 2023.
- The IPO consists of a fresh issue 68,00,000 shares.
- IPO Price range – Rs 62 to Rs 65
- There is no offer for sales in the IPO issue.
- The Equity Shares have a face value of Rs 10 each.
- The retail allocation is not less than 35% of the total size.
- This SME IPO will be listed in NSE SME exchange.
Drone Destination IPO Review – Subscription for this SME IPO is opening from 7th July to 11th July 2023. According to the prospectus, the IPO consists of a fresh issue of 68,00,000 shares. There is no offer for sales in the IPO issue. The Equity Shares have a face value of Rs 10 each. The retail allocation is not less than 35% of the total size. This SME IPO will be listed on the NSE SME exchange.
Drone Destination IPO review
Headquartered in New Delhi, Drone Destination was incorporated in 2019 under the leadership of Mr. Chirag Sharma and Mrs. Shashi Bala.
Mr. Chirag has over 10 years of experience in the drone industry and is a certified drone pilot. He is the Managing Director of the company.
Mrs. Shashi Bala is the Chief Financial Officer of the company. She has over 15 years of experience in finance. she has worked in a variety of industries, including technology and aviation.
Drone Destination Limited Business Description
Drone Destination Limited is an Indian drone technology company that offers a wide range of services, including drone manufacturing, training, and consulting. Drone Destination Limited is a DGCA-authorized Remote Pilot Training Organization (RPTO) that offers certified training programs at multiple locations across India. The company also has a sister company, Hubblefly Technologies, which is a DGCA-approved manufacturer of drones.
The services of Drone Destination Limited are used by a variety of industries such as agriculture, construction, and surveying. The company’s drones are also used for a variety of purposes, such as aerial photography, videography, and mapping. Drone Destination Limited is committed to providing high-quality drone services and training to its customers.
Drone Destination Limited also provides DGCA-certified Drone Training collaborating with Indira Gandhi Rashtriya Uran Akademi (IGRUA).
The company became the first Drone Training Partner of the National Skill Development Corporation (“NSDC”) in Oct 2022 and offers joint certification on various drone-related application courses through NSDC’s Skill India Portal.
The company has started our drone services for “Prime Minister Svamitva Yojna” in an MOU-led understanding with several GIS companies.
Drone Destinations Business verticals can be segmented into two
- Training and Education
- DGCA-Certified Drone Pilot Training
- DGCA-Certified Drone Instructor Training
- Application-Based Training Programs
- Drone as a Service
- Survey & Mapping
- Surveillance & Monitoring
The Drone destination Founders and Leadership team
Mr. Chirag Sharma and Mrs. Shashi Bala are the founders of Drone Destination Limited.
The Drone Destination Revenue and Profit
The total income of the company multiplied many times from INR 3932.85 thousand in FY2021 to INR 120722.41 thousand in FY2023. The Profit After Tax also went up significantly from a negative INR (455.95) thousand in March 2021 to INR 24419.00 thousand in March 2023.
Demand for Drones and related services has been gaining momentum in India after the government announced a supportive policy for drone users.
| Time Period Ended | 31-Mar-21 | 31-Mar-22 | 31-Dec-22 |
|---|---|---|---|
| Total Assets | 96.34 | 278.30 | 2,359.33 |
| Total Revenue | 39.33 | 257.16 | 1,207.73 |
| Profit After Tax | -4.56 | 20.73 | 244.19 |
| Net Worth | 2.42 | 23.15 | 1,757.34 |
| Reserves and Surplus | -8.58 | 12.15 | 1,257.34 |
| Total Borrowing | 9,794.46 | 151.09 | 159.17 |
Objective Behind the Drone Destination IPO Details
- The company intends to utilize the net proceeds from the issue aggregating to Rs. 1,00,000.00 thousand for the purchase of new drones.
- The company will use these drones to provide high-quality services across multiple domains viz. training, Survey & Mapping, Surveillance & monitoring, large-scale mapping, and agriculture.
- The company intends to deploy Net Proceeds aggregating to Rs. 55,000 thousand to purchase 100 Maruti EECO (5 Seater) to travel of teams for survey & mapping.
- About Rs. 20470.50 thousand will be utilized for Capital expenditure, which includes Drone base stations, laptops, and printers.
- Around Rs. 85,000.00 thousand towards funding its working capital requirements in the ordinary course of business.
Drone Destination IPO review: Do you invest?
- The drone industry in India is growing now with the government’s focus on utilizing drone technologies in each segment of the economy.
- The company has reported strong revenue growth over the last three years ending March 2023.
- Drone Destination Limited is into end-to-end services in the Drone industry from manufacturing to training.
- However, there is no strong barrier to entry into this industry. Other drone manufacturers may enter into the training and education segment of this industry and that will affect this company’s revenue.
- This is a capital-intensive industry and requires substantial working capital. That may affect shareholders’ interests.
- Looking at the financials and factors mentioned above, I would prefer to invest in this SME IPO at the moment for listing gain.
Drone Destination IPO Price and Other details
| Drone Destination IPO Details | Drone Destination IPO Price and other details |
| IPO Date | Jul 7, 2023 to Jul 11, 2023 |
| IPO Price band | ₹62 to ₹65 per share |
| IPO Allotment date | Friday, 14 July 2023 |
| Refunds Initiation date | Monday, 17 July 2023 |
| Credit of Shares to Demat Account | Tuesday, 18 July 2023 |
| Drone Destination IPO Listing Date | Wednesday, 19 July 2023 |
| Fresh Issue | 6,800,000 Equity shares (Worth Rs 44.2 Cr.) |
| Offer for Sale | Nil |
| Maximum bid (lot size) For retail investor | 1 lot of 2000 shares Total Investment of ₹130,000 |
| Minimum bid (lot size) For retail investor | 1 lot of 2000 shares Total Investment of ₹130,000 |
| Face Value | INR 10 per share |
| Listing on | NSE Exchange |
Drone Destination IPO Lead Managers & Registrar
| Lead Manager | Registrar |
| Narnolia Financial Services Ltd | Maashitla Securities Private Limited Phone: +91-11-45121795-96 Email: ipo@maashitla.com Website: https://www.maashitla.com/ |
Drone Destination Company Contact Information
| Drone Destination Limited C-13, Ground Floor, Panchsheel Enclave, Delhi – 110017 Phone: 011-41050607 Email: cosec@thedronedestination.com Website: http://www.thedronedestination.com/ |
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