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Drone Destination IPO envisages to raise ₹44.20 crore which  comprises entirely of a fresh issue of share. The price band has been fixed in the range of ₹62 to ₹65. The fresh issue entails the issue of 68 lakh shares. Drone Destination Ltd is a DGCA-authorized Remote Pilot Training Organization and has developed an integrated drone eco-system built around drone manufacturing, certified training, services, and rent a drone.

About :

• The Company was originally incorporated as a private limited company in the name of “Drone Destination Private Limited”, on May 10, 2019.
• Company is a DGCA-authorized Remote Pilot Training Organisation (RPTO) offering certified training programs. After due completion of the course, the RPTO generates a Remote Pilot Certificate (RPC) from DGCA’s Digital Sky Platform.
• Drone Destination has three training bases of our own at Gurugram, Chandigarh and Phulpur. 4
• Company has also entered into an agreement with Indira Gandhi Rashtriya Uran Akademi (“IGRUA”) for providing DGCA-certified Drone Training and are currently present in Gurugram, Bangalore, Gwalior, Kangra, Coimbatore, Madurai and Bhopal.
• Drone Destination has become the first Drone Training Partner of National Skill Development Corporation (“NSDC”) and shall offer joint certification on various drone-related application courses through NSDC’s Skill India Portal. Further through this association, it will offer skill loans with assistance of banking partners to make training affordable for aspiring candidates.
• Recently, the company has started its drone services for “Prime Minister Svamitva Yojna” in a MOU-led understanding with GIS companies viz. MatrixGeo, NeoGeo and GeoKno. This programme is Government of India’s initiative towards establishment of clear ownership of property in rural inhabited areas, by mapping of land parcels using drone technology and providing ‘Record of Rights’ to village household owners with issuance of legal ownership cards (Digital Property cards/Title deeds) to the property owners.
• Drone Destination Limited has trained the highest number of DGCA-certified Drone Pilots in India along with its partners IGRUA, the largest FTO of India under Ministry of Civil Aviation. It is authorised by the Government of India to conduct key “Train the Trainer Programs”.

• The Company had adopted an inorganic growth strategy for the growth of the business.

Drone Destination IPO: Financials

Anchor Investors

Drone Destination IPO: Salient Points

• The Indian drone industry is forecasted to have a market size USD 40 billion by 2030, growing at a CAGR of 37%.
• Drones find usage across a variety of industries such as precision agriculture and farming, energy sector, mining, disaster management, film and media industry, sea ports, oil and gas industry and others.
• The drone industry is supported by various government initiatives such as the PLI Scheme, liberalised drone rules, ban on imports and the new GIS policy. SVAMITVA and SMAM are the two key schemes of Government of India which magnify the use of drones.
• Mr. Chirag Sharma and Ms. Shashi Bala are the Promoters of the Company. On completion of this Issue, Promoters holding of 84.98% (pre-issue) will stand at 61.20% (post-issue).
• The company offers training programs for drone pilots and it has joined hands with National Skill Development Corporation (NSDC) and will offer joint certification on various drone-related application courses through NSDC’s Skill India Portal.
• Drone Destination Limited has recorded impressive financial growth over the years. Its total revenue stood at Rs 1207.22 lakhs for FY23, while it stood at Rs 256.46 lakhs for FY22 and Rs 39.18 lakhs for FY21.
• Similar growth is mirrored in its EBITDA of Rs 470.25 lakhs for FY23, which stood at Rs 39.36 lakhs for FY22. PAT stood at Rs 244.19 lakhs for FY23 against 20.73 lakhs for FY22.
• Drone Destination Limited currently operates as a Drone As A Service (DAAS) and Training and Education provider. The company has DGCA-Certified Master Instructors for imparting the traning.
• Its new verticals include Rent-A-Drone, Agricultural Services and Drone Sports. It is backed by Hubblefly Technologies, with extensive drone manufacturing capabilities. It serves 80+ Clients for both Govt. and private sector. The key clients of the company include Reliance Industries Limited, Airbus, IFFCO, Tata, Aditya Birla group, Asteria Aerospace, Syngenta and many more. Drone Destination, with its GIS partners, plays an important role in execution of flagship government projects like Prime Minister “Svamitva Yojana” and other survey and mapping services with strong presence in Karnataka, Gujarat and Uttar Pradesh.
• It has the largest fleet of training drones in the country.
• Drone Destination plans to undertake several other drone-powered service projects including asset inspection across railways, roadways, power and utilities sector, estimating and monitoring mining resources, agri spray and precision agriculture services for crop-yield management and health assessment, surveillance projects to address disaster management and many more.
• Drone Destination IPO funds will be used for the purchase of new drones, purchase vehicles (for survey and mapping), to meet the working capital requirements of the company, and for general corporate purposes.
• Drone Destination currently operates nine “Drone Hubs” at Gurugram, Dharamshala, Chandigarh, Gwalior, Ahmedabad, Bangalore, Coimbatore, Madurai and IFFCO Phulpur and plans another 150 Drone Hubs, in next three years with the IPO funds. These drone hubs will offer drones on rent along with certified pilots, drone enterprise solutions, repair, and maintenance support along with specialized training. 
• The company compares favorably with the peer DroneAcharya Aerial Innovations Limited stated by it in its RHP. Though it has also mentions Ideaforge, the same is a drone manufacturer and so not compared.

• Its PE ratio is 18x (fy23 earnings) which look good considering the growth possibilities in the sector.
• This is the first mandate from Narnolia Financial Services Ltd., a Merchant Banker from Kolkata.
• This IPO is underwritten by Kantilal Chhaganlal Securities (85%) and lead manager Narnolia Financial Services Ltd. (15%).
• In a surprise move the company has shifted the IPO dates by two days on the pretext of request by investors to let them invest from refunds offrom Senco Gold IPO which are expected on or after 11th July 23.
• Nikunj Stock Brokers Limited’s one of the market maker for the issue has been associated with issues like Urban Enviro Waste Management, Indong Tea Company IPO, SVJ Enterprises IPO, ITCONS E-Solutions IPO etc. with a mixed record.4
• Share India Securities, the other market maker for the issue has a better record and been associated with issues like Quicktouch Technologies, De Neers Tools, Krishca Strapping Solutions, Maiden Forgings etc.
• Looking at performance of Ideaforge and Drone Acharya Aerial Innovations Limited on the exchanges, the Drone catch word can do wonders for price of companies.
• I will apply in Drone Destination IPO to the extent of funds available at my disposal.
• SME IPO in general are quite risky though this one looks better placed to me.
• GMP as reported on social media has been steady or rising and may be Rs. 45/-.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.