Admin
18 August 2023

Drone Destination IPO: Navigating the Skies of Opportunity

Introduction:

Established in 2019, Drone Destination Limited has rapidly emerged as a pioneering force in the Indian drone industry. The company is a DGCA-authorized Remote Pilot Training Organisation (RPTO) offering certified training programs across multiple locations in India. Drone Destination has positioned itself as a leading player in the drone-as-a-service and training sector, with a diverse range of offerings.

Diverse Services Offered:

Drone Destination's services span a wide spectrum:

- Drone-As-A-Service (DAAS) Training
- Education & Recreation
- Rent a Drone Agriculture Services

The company's diverse portfolio enables it to cater to both B2B and B2C segments, offering solutions tailored to various industries and sectors.

Partnerships and Recognitions:

Drone Destination has forged key partnerships with notable entities, including IGRUA, IFFCO, IIT Patna, NSDC, Neo-Geo, and Matrix-Geo. These strategic collaborations have further bolstered the company's position in the industry. Notably, the company became the first Drone Training Partner of the National Skill Development Corporation (NSDC) in October 2022, solidifying its role as a pioneer in drone training.

Wide Range of Drones:

Drone Destination boasts an array of drone models, each tailored to meet distinct customer requirements. These include the Star Guru, Star Edge, Sky Star, Agristar, Agri Mapper, Star Eye, and Laser Star. Each drone model is equipped with unique features to cater to different use cases.

Financial Snapshot

Drone Destination's financial performance showcases its growth trajectory:

Total Assets	₹96.34 Lakhs to ₹2,359.33 Lakhs
Total Revenue	₹39.33 Lakhs to ₹1,207.73 Lakhs
Profit After Tax	-₹4.56 Lakhs to ₹244.19 Lakhs
Net Worth	₹2.42 Lakhs to ₹1,757.34 Lakhs
Total Borrowing	₹9,794.46 Lakhs to ₹159.17 Lakhs

Drone Destination IPO Details:

The Drone Destination IPO is a Book Built Issue with an IPO total issue size of ₹44.20 Crores. The issue price ranges from ₹62 to ₹65 per share. The IPO is set to be listed on NSE SME. The subscription period was from July 7, 2023, to July 13, 2023, and the listing date is scheduled for July 21, 2023.

Promoter Holding and Utilization of Funds:

The promoters of the company are Mr. Chirag Sharma and Ms. Shashi Bala. The pre-issue shareholding of the promoters was 85.14%, which is expected to reduce to 62.31% post the IPO. The funds raised through the IPO are earmarked for various purposes, including the purchase of new drones, vehicles, capital expenditure, working capital requirements, general corporate purposes, and issue expenses.

Expert Review:

While Drone Destination operates in a competitive segment, its sudden boost in net profits for FY23 has raised questions about sustainability. The issue appears aggressively priced based on the exceptional earnings of FY23. The IPO extension, two Market Makers, and a new merchant banker are noteworthy aspects. Investors are advised to exercise caution and consider the expert review's insights.

Conclusion:

Drone Destination's IPO offers investors an opportunity to participate in India's burgeoning drone industry. With a range of services, strategic partnerships, and DGCA authorization, the company is well-positioned to capitalize on the growing demand for drone-related solutions. However, potential investors should carefully consider the expert review's cautious analysis and evaluate their risk appetite before making investment decisions. As Drone Destination aims to soar to new heights, investors must weigh the company's prospects against the market's dynamics and their own investment goals.

Read More IPO related blogs - Service Care Limited IPO