Drone Destination Ltd IPO

Drone Destination Limited is a Drone as a Service and Training Company headquartered in New Delhi, India that specialises in providing comprehensive drone training programs and services. As a DGCA-authorised Remote Pilot Training Organisation (RPTO), the company offers certified training programs at multiple locations across India, enabling individuals to become skilled and certified remote pilots.

Upon successful completion of the training courses, Drone Destination Limited's RPTO generates a Remote Pilot Certificate (RPC) from the DGCA's Digital Sky Platform. This certificate is issued for a specific class and category of drone and remains valid for a maximum period of 10 years in accordance with the Drone Rules of 2021.

To make training more accessible and affordable for aspiring drone pilots, the company also provides skill loans in collaboration with NSDC's affiliate Non-Banking Financial Companies (NBFCs). This initiative aims to remove financial barriers and empower individuals to pursue their passion for drone piloting.

Drone Destination Limited IPO Details

Drone Destination Limited IPO is a 100% fresh issue comprising 68,00,000 shares. The price band is set between ₹62 to ₹65 per share with a face value of ₹10 per share. The lot size is 2000 shares. It will be listed on NSE SME.

Drone Destination Limited IPO Objectives 

The company proposes to use the net proceeds from the issue to meet the following objects:

• Purchase of new drones.
• Purchase of vehicle.
• Capital expenditure.
• Working capital requirements.
• General corporate purposes.
• Issue expenses.

Peer Details

Droneacharya Aerial Innovations Limited is a listed peer operating in the same business line. Considering the nature and turnover of the business of the company the peer is not strictly comparable.

Highlights of Drone Destination Ltd

• It is the largest Drone Training Network in India, along with its Training Partner IGRUA, and the highest market share in DGCA-certified Drone Pilot Training. 
• Drone Destination Limited has recently ventured into drone services for "Prime Minister Svamitva Yojna." Under a memorandum of understanding (MOU) with several Geographic Information System (GIS) companies, the company supports the government's initiative to establish clear ownership of property in rural inhabited areas.
• Drone Destination Limited has already deployed 34 drone pilots and co-pilots to conduct village and large-scale mapping across Uttar Pradesh, Gujarat, and Karnataka. The company's drones have covered an impressive number of 4481 villages as of April 30, 2023, contributing to the successful implementation of Prime Minister Svamitva Yojna.

Company Financials

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Strengths

1. Drone Destination is supported exclusively by Hubblefly Technologies, a DGCA-authorised Drone Manufacturing company with a current capacity to manufacture 3000+ drones annually. The drones are available to Drone Destination at the most competitive prices.

2. The company aims to develop the largest Network of Drone Hubs (150+ locations over the next 05 years) and deliver drone-powered services on rent along with its certified drone force, ensuring the fastest turn-around time and high operational efficiency at affordable costs.

Risks

1. Presently the drone industry is in a nascent stage. If the industry does not experience significant growth, then the company will not be able to achieve its anticipated level of growth.

2. There are outstanding legal proceedings involving the company as well as its group companies, promoter and Directors. Any adverse outcome of such proceedings may affect Drone Destination’s business, financial condition and reputation.