DroneAcharya’s IPO Subscribed 262X On The Last Day; Receives Bids Worth INR 6,016 Cr

Pune-based deeptech startup DroneAcharya’s initial public offering (IPO) was oversubscribed 262 times on the last day. In total, the startup has received bids worth INR 6,016.78 Cr for 109.61 Cr shares. 

The startup’s IPO saw a strong demand from high net-worth individuals (HNIs) and retail investors. While non-institutional investors (NIIs) subscribed more than 388X at 34.90 Cr shares against 8.98 Lakh shares on offer, qualified institutional buyers (QIBs) subscribed 5.51 Cr shares (46.21 times) against 11.94 Lakh shares on offer.

DroneAcharya also received a strong response from retail investors. On the last day of the IPO, the startup’s retail category received bids to the tune of 69.19 Cr shares against 20.92 Lakh shares on offer. 

DroneAcharya hit the BSE SME exchange on December 13 with 62.9 Lakh shares in the price range of INR 52-54 per share. The startup had reserved 8.98 Lakh shares for HNIs and 11.94 Lakh shares for QIBs. Of the total shares on offer, around 20.92 Lakh shares were earmarked for retail investors.

While the company was looking to raise nearly INR 34 Cr through the fresh issue of shares, the startup has received bids to the tune of INR 6,016 Cr. Corporate Capital Ventures is the lead book-runner for the issue. 

The startup plans to deploy the proceeds from the IPO to manufacture drones and sensors. It also plans to invest the capital to open 12 new training centres by March 2023 and foray into the customised indigenous drone manufacturing space. 

Prior to the public issue, DroneAcharya raised INR 9.66 Cr as part of its anchor round from investors such as Aegis Investment Fund and Maven India Fund. 

Founded in 2017 by Prateek Srivastava, DroneAcharya offers a range of drone solutions for multi-sensor drone surveys, data processing, pilot training and other industry-specific courses. 

The startup claims to have trained more than 180 drone pilots so far and rolled out a range of courses to upskill Indians in building a career in the drone ecosystem.

According to the latest data available with Inc42, DroneAcharya reported a revenue of INR 3.1 Cr and a net profit of INR 72.06 Lakh in the first quarter of the financial year 2022-23 (FY23) .

DroneAcharya is one of the three startups that listed on the Indian bourses this year. The other two are logistics major Delhivery and market intelligence platform Tracxn. 

The positive response to DroneAcharya’s IPO comes at a time when the overall market sentiment is negative. The company’s IPO has also come at a time when the government has introduced a slew of schemes to scale drone manufacturing in the country. 

According to the Ministry of Civil Aviation, the Indian drone industry is expected to achieve a turnover between INR 12,000 Cr and 15,000 Cr by 2026.