Company and IPO Overview:
Drone Destination IPO is live after IdeaForge IPO which is also in drone related business. The company is headquartered in Delhi and operates DGCA-Authorized Drone Training Bases in various cities including Gurugram, Bangalore, Gwalior, Kangra, Coimbatore, Madurai, and Bhopal. It is a DGCA-authorized Remote Pilot Training Organization (RPTO) and offers certified training programs at multiple locations across India. Having successfully trained 362 drone pilots in India, Drone Destination Limited holds the distinction of being the largest Drone Training Network in the country.
They have the largest Training network in India in their segment. Drone Destination Limited offers a variety of services including:
1. Drone-As-A-Service (DAAS) Training
2. Education & Recreation
3. Rent a Drone Agriculture Services
The company Drone Destination Limited has its partnership with Training Partner IGRUA and the company's prominent position in DGCA-certified Drone Pilot Training, boasting the highest market share .Furthermore, in October 2022, the company became the first Drone Training Partner of the National Skill Development Corporation (NSDC). With over 80 clients from both private and government sectors, Drone Destination Limited continues to thrive.
Additionally, the company actively participates in the Svamitva Yojna, engaging in survey and large-scale mapping activities across Uttar Pradesh, Gujarat, and Karnataka. This involvement establishes the company as a leading player in this initiative.
The drones offered by the company are marketed under the names - Star Guru, Star Edge, Sky Star, Agristar, Agri Mapper, Star Eye, and Laser Star. All these have their distinct features and entail different requirements of the customers.
Drone Destination Limited IPO is a NSE SME IPO and the company is about to raise around ₹ 44.20 crores via IPO. The price band of the issue is ₹ 62 to ₹ 65 with a minimum market lot of 2000 shares. The retail quota is 32.43%, NII is 13.90%, QIB is 18.56% and others 35.11%.
Financials (rounded off):
Date | Total Revenue (₹ in cr) | PAT (₹ in cr) |
31/03/2021 | 0.39 | (0.04) |
31/03/2022 | 2.57 | 0.2 |
31/03/2023 | 12.07 | 2.44 |
Objectives of the Issue:
1. To cover the costs of acquiring new drones.
2. To fund the acquisition of a vehicle.
3. To fulfill the capital expenditure requirements.
4. To address the working capital needs.
5. To cover public issue expenses.
IPO Details:
IPO Date | 07/07/2023-13/07/2023 |
Face Value | ₹10 per share |
IPO Price Band | ₹62-₹65 per share |
IPO Lot Size | 2000 Shares |
Listing at | NSE SME |
Basis of Allotment | 18/07/2023 |
Credit of Shares in Demat | 20/07/2023 |
Listing Date | 21/07/2023 |
Pre-Issue Shareholding | 85.14% |
Post-Issue Shareholding | 62.31% |
Retail Minimum Lot Size | 2000 shares (₹1,30,000) |
Valuations & Margins:
Indicators | FY 21 | FY 22 | FY 23 |
EPS | (0.03) | 0.12 | 1.4 |
P/E | - | - | 44.29-46.43 |
EBITDA (%) | (6.09) | 15.54 | 38.94 |
Debt/Equity | 21.85 | 6.42 | 0.06 |
ROCE (%) | (10.86) | 17.09 | 18.65 |
Important things to note about the Company:
Important things to note about the Company:
1. Drone Destination has the largest Drone Training Network in India, in collaboration with the Training Partner IGRUA.
2. Drone Destination has the highest market share in DGCA-certified Drone Pilot Training.
3. Key partnerships in the Training & Drone Service Space give an additional advantage.
4. Drone Destination is supported by Hubblefly Technologies with extensive Drone manufacturing capabilities.
5. There have been allegations of non-compliance with the regulations and rules prescribed by the Government of India.
6. Over Dependence on group companies and other drone manufacturing companies to fulfill drone requirements.
7. There are pending legal proceedings against promoters and directors.
Crisp Insights:
Current Grey Market Premium of Drone Destination IPO is 55-60.
Drone Destination IPO is receiving strong subscription.
Business looks well positioned to capitalize on the growth of Drone Sector.
Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.
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