DroneAcharya Puts Merger With AITMC On Hold

BSE SME-listed DroneAcharya has taken a U-turn from its decision to merge with agri-drone company AITMC Ventures and has decided to put the merger on hold. 

In a regulatory filing, DroneAcharya said that its board has “rescinded” the resolution it passed on January 23 this year regarding signing a term sheet with AITMC Ventures for a “proposed strategic merger”.

“The reason for the recission is to re-evaluate the term sheet and focus on the current growth and future opportunities in the sector,”  the filing added.

However, DroneAcharya founder and MD Prateek Srivastava told Inc42 that the company has not cancelled the merger but put it on hold for now. 

Meanwhile, Preet Sandhuu, founder and MD of AITMC Ventures, told Inc42 that the merger plan has been put on a backburner for at least a year. She said that the reason behind this is that AITMC Ventures has received acquisition offers from “big companies” at much higher valuations. However, she didn’t disclose the name of the companies. 

“After the recent border tensions, there has been a huge jump in our valuation. Today we are valued anywhere between INR 1,400 to 1,500 Cr,” said Sandhuu.  

In January, when the two companies signed the term sheet for the merger, Srivastava said that the merger would act as a “force multiplier” for them and make the resultant entity a leader in India’s burgeoning drone tech space. 

Post the merger, the resultant entity was to look for a main board listing on the BSE. While the merger hangs in the air, Sandhuu said that AITMC Ventures is eyeing a public listing and plans to refile its draft red herring prospectus (DRHP) soon. 

Earlier, the startup filed its DRHP for its IPO on NSE Emerge in October 2023. However, it didn’t proceed ahead with the issue. 

Founded in December 2016 by Deep Sisai and Sandhuu, AITMC Ventures is operated by AVPL. It is an agri-drone company with presence across 12 states, with 50 global incubation and skill hubs (GISH) and 20 world incubation and skill hubs (WISH) dedicated exclusively to the drone and agriculture sectors.

Meanwhile, DroneAcharya also said that it would acquire an additional 49% stake in its subsidiary and drone manufacturing startup PYI Technologies for INR 49,000. 

As per the filing, the acquisition will expand the scope of business in drone manufacturing, trading and training. DroneAcharya first acquired a 51% stake in  PYI Technologies for an undisclosed amount in 2023. 

Founded in 2022 by Abhigyan Ranjan, PYI Technologies offers beginner-friendly models of customised camera drones and DIY drone kits. It had an annual turnover of INR 53,700 for the financial period ending March 31, 2023-24 (FY24). 

Additionally, the Prateek Srivastava-led company has also called off its plans to shift its registered office from Pune to Gurugram.  

DroneAcharya’s consolidated profit after tax (PAT) plunged 62.1% to INR 1.50 Cr during the six months ended September 2024 (H1 FY25) from INR 3.96 Cr in the same period last year. However, revenue from operations rose 28.8% to INR 26.90 Cr during the year under review from INR 20.88 Cr in the first half of FY24. 

Shares of the company ended today’s trading session 2% higher at INR 76.60.