Drone Destination Limited IPO
i. Drone Destination is a DGCA-authorized Remote Pilot Training Organisation (RPTO) offering Certified training programs at multiple locations pan-India. After due completion of the course, the RPTO generates a Remote Pilot Certificate (RPC) from DGCA’s Digital Sky Platform for a particular Class & Category of Drone*. The RPC is valid for a maximum period of 10 years under the Drone Rules, 2021.
ii. The company is headquartered in New Delhi and comprises of a well-experienced team of Aviation & Drone Experts.
iii. The company has started its drone services for “Prime Minister Svamitva Yojna” in a MOU-led understanding with several GIS companies. This programme is Government of India’s initiative towards establishment of clear ownership of property in rural inhabited (Abadi) 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
iv. The Company has already deployed 34 drone pilots & co-pilots for conducting village and large-scale mapping across Uttar Pradesh, Gujarat and Karnataka.
Business Verticals are divided into the following categories:
1. Training and Education
a. DGCA-Certified Drone Pilot Training
b. DGCA-Certified Drone Instructor Training
c. Application-Based Training Programs
2. Drone as a Service
a. Survey & Mapping
b. Surveillance & Monitoring
Competitive Strengths
i. Largest Drone Training Network in India along with our Training Partner IGRUA, and the highest market share in DGCA-certified Drone Pilot Training.
ii. Key Partnerships in the Training & Drone Service Space
iii. A fleet of Owned Drones and vehicles deployed for Drone Services & Training
Objects of the Drone Destination Limited IPO:
Drone Destination Limited IPO Details:
| Open Date: | Jul 07 2023 |
| Close Date: | Jul 13 2023 |
| Total Shares: | 6,800,000 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Built Issue IPO |
| Issue Size: | 44.20 Cr. |
| Lot Size: | 2000 Shares |
| Issue Price: | ₹ 62-65 Per Equity Share |
| Listing At: | NSE Emerge |
| Listing Date: | Jul 21 2023 |
Promoters And Management:
Financials of Drone Destination Limited IPO:
| Particular (In Crore) | Mar-21 | Mar-22 | Mar-23 |
| Equity Share Capital | 11.00 | 11.00 | 500.00 |
| Reserves | -8.00 | 12.00 | 126.00 |
| Borrowings | 55.00 | 151.00 | 159.00 |
| Trade Payables | 33.00 | 53.00 | 148.00 |
| Other Liabilities | 5.00 | 51.00 | 1,426.00 |
| Total Liabilities | 96.00 | 278.00 | 2,359.00 |
| Net Block | 24.00 | 70.00 | 524.00 |
| Capital Work in Progress | 0.00 | 0.00 | 0.00 |
| Investments | 0.00 | 0.00 | 0.00 |
| Other Assets | 7.00 | 8.00 | 13.00 |
| Total NC Assets | 31 | 78 | 537 |
| Receivables | 5.00 | 25.00 | 667.00 |
| Inventory | 23.00 | 31.00 | 29.00 |
| Cash & Bank | 9.00 | 41.00 | 103.00 |
| Other Assets | 28.00 | 103.00 | 1023.00 |
| Face value | 10 | 10 | 10 |
| Particular (In Crore) | Mar-21 | Mar-22 | Mar-23 |
| Sales | 39.00 | 256.00 | 1,207.00 |
| Raw Material Cost | 0.00 | 1.00 | 16.00 |
| Change in Inventory | 0.00 | 0.00 | 0.00 |
| Employee Cost | 8.00 | 63.00 | 280.00 |
| Other Expenses | 33.00 | 153.00 | 142.00 |
| Other Income | 0.00 | 0.60 | 0.50 |
| EBITDA | -2 | 38 | 769 |
| EBITDA Margin | -5.13% | 15.00% | 63.67% |
| Depreciation | 3.00 | 10.00 | 123.00 |
| Interest | 0.00 | 1.00 | 17.00 |
| Profit before tax | -6.00 | 28.00 | 330.00 |
| Tax | -1.00 | 7.00 | 86.00 |
| Net profit | -4.00 | 21.00 | 244.00 |
| Particular (In Crore) | Mar-21 | Mar-22 | Mar-23 |
| Net Cash Inflow from Operating Activity | -13 | -7 | -83 |
| Net cash inflow from investing activities | -26 | -56.00 | -58.00 |
| Cash from Financing Activity | 40 | 95 | 149.00 |
| Net Cash Flow | 1 | 32 | 988.00 |
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I would like to know whether it is easy to sell sme ipos if u get an allotment
In the heat of wave of Drone companies currently, the IPO may sail but nothing much moat in the business and valuation are sky rocket.
Mr. Chirag Sharma who is a promoter of Drone Destination is running two companies.
1. HUBBLEFLY TECHNOLOGIES PRIVATE LIMITED- This company is in manufacturing of Drones.
2. Drone Destination ( IPO Company ) – This company is indulge in Training and Survey work.
1. The company is engaged in the business of drone training and Drone as a Service for a. Survey & Mapping
b. Surveillance & Monitoring.
2. Almost 50-50% revenue comes from both the services.
3. Drone Training specializes in providing certification training to pilots, enabling them to legally operate drones in India according to DGCA regulations. The certification program, typically completed in 5-7 days, focuses on essential skills and knowledge without requiring extensive technical expertise. However, it is important to note that this particular business may not have a significant competitive advantage (moat) compared to others in the industry.
4. The second line of business from where company is generating majority of income is survey project of mapping under the SVAMITVA scheme (a flagship project under the Ministry of Panchayati Raj for mapping 6,50,000 villages and creating Digital Property Cards for landowners).
In the financial year 2022-2023, Drone Destination’s survey business accounted for INR 5.7 crore of income, with the majority of revenue generated from the aforementioned government scheme. As of March 31, 2023, the company’s total receivables amount to approximately INR 6.6 crore, primarily attributable to the payment terms of the government project, which have extended to 120 to 180 days.