DroneAcharya Shares Slump 5% To Hit Lower Circuit

Shares of DroneAcharya Aerial Innovations crashed 5% to hit the lower circuit at INR 68.20 during the morning trade on the BSE today (February 28). 

This comes a day after the company received the Directorate General of Civil Aviation’s (DGCA) type certification for its multipurpose drone, AgriVeer. The drone is designed for applications in agriculture, education, and drone pilot training. 

The stock recouped some of its losses and was trading 3.83% lower at INR 69.00 per share at 11:27 AM with its market capitalisation dropping to INR 165 Cr. 

At the current market price, the stock lost almost 60% in the last one year and 32% in the past month. DroneAcharya shares ended in red in four out of the last seven sessions on the BSE. 

Further, the drop in its share price coincided with a decline in the benchmark indices today.

Founded by Prateek Srivastava in 2017, DroneAcharya offers an array of drone solutions for multi-sensor drone surveys, pilot training, and data processing, among others. 

The company last month signed a term sheet for a “strategic company merger” with agri-drone company AITMC Ventures. The merger will see both the companies combine their support teams, like finance, legal and compliance, but continue to retain their brand identities.

AITMC founder and managing director Preet Sandhuu expects the entire process to take about seven to eight months and AVPL is likely to hold a bigger stake in the merged entity.

Prior to that, DroneAcharya announced securing a contract worth INR 7.53 Lakh from the defence ministry to provide drone-centric training courses. As per the contract, the company will provide a drone pilot training course and drone building course for 8 Indian Army Officials.

Last year, the company expanded into the Middle Eastern market via an Abu Dhabi subsidiary.