Drone Destination IPO: Subscription Status, GMP, and Key Details on Day 2
Drone Destination Ltd’s highly anticipated initial public offering (IPO) has entered its second day of subscription, with interested investors able to bid for shares until Thursday, July 13, 2023. The company has set the price band for the IPO at ₹62 to ₹65 per equity share, and the shares are scheduled to be listed on the NSE SME exchange on Friday, July 21. With this IPO, Drone Destination aims to generate ₹44.20 crore.
The IPO comprises a fresh issue of equity shares, totaling 68 lakh shares with a face value of ₹10 each. There is no offer for sale (OFS) component associated with this IPO. The net proceeds from the public offering will be allocated towards new drone purchases, capital investments, and other general company purposes.
In terms of allocation, 15% of the IPO has been reserved for non-institutional investors, while 50% has been allocated to qualified institutional buyers. The remaining 35% is set aside for retail investors. The final allocation will take place on Friday, July 14.
The IPO advisory services for Drone Destination have been entrusted to Longview Research and Advisory and PLS Capital Consultants Pvt Ltd. The lead manager for the IPO is Narnolia Financial Services Limited, and the official registrar of the NSE SME IPO is Maashitla Securities Private Limited.
For the financial year ending in March 2023, Drone Destination reported revenues of ₹12.07 crore and a net profit of ₹2.44 crore.
Drone Destination Ltd IPO Subscription Status:
On the second day of the SME IPO, Drone Destination Ltd has witnessed a remarkable subscription rate of 32.13 times. The IPO received significant interest from retail investors, with their portion being oversubscribed by 53.09 times. Non-institutional bidders (NIIs) and qualified institutional buyers (QIBs) also demonstrated strong interest, with subscription rates of 18.64 times and 5.61 times, respectively, based on data from chittorgarh.com.
As per the data from chittorgarh.com, the company has received bids for 14,17,68,000 shares against the 6,800,000 shares on offer.
On the first day, the IPO was subscribed 9.16 times.
Drone Destination Ltd IPO GMP Details:
The grey market premium (GMP) for Drone Destination shares currently stands at +44, indicating a premium of ₹44 in the grey market on Monday, according to topsharebrokers.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price for Drone Destination shares is ₹109 per share. This reflects a substantial increase of 67.69% over the IPO price.
The “grey market premium” signifies investors’ willingness to pay more than the issue price for the shares.
About Drone Destination:
Drone Destination Limited, founded in 2019, is the leading company in India that offers Drone as a Service and Training. They are authorized by the Directorate General of Civil Aviation (DGCA) as a Remote Pilot Training Organization (RPTO) and provide certified training programs at multiple locations across India. In October 2022, Drone Destination Limited became the first Drone Training Partner of the National Skill Development Corporation (NSDC), further solidifying their position in the industry. They have the largest training network in India dedicated to their field. The company offers a wide range of services, including:
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