Drone Destination Ltd. initiated its initial public offering (IPO) on Friday, July 7, 2023, and opened the subscription window, which will remain active until Thursday, July 13. The company has set the price band for the IPO at ₹62 to ₹65 per equity share. Drone Destination aims to generate ₹44.20 crore in funds through this public offering, which will be utilized for various purposes such as new drone purchases, capital investments, and general company requirements. The company has scheduled the listing of its shares on the NSE SME exchange for Friday, July 21.
The IPO allocation structure comprises 15% reserved for non-institutional investors, 50% allocated to qualified institutional buyers, and the remaining 35% reserved for retail investors. The final allocation will take place on Friday, July 14.
To ensure a successful IPO, Drone Destination has enlisted the assistance of advisors Longview Research and Advisory and PLS Capital Consultants Pvt Ltd. Narnolia Financial Services Limited has been appointed as the lead manager for the issue, while Maashitla Securities Private Limited has taken up the role of the official registrar for the NSE SME IPO.
Drone Destination’s financial performance for the year ending March 2023 exhibited revenues of ₹12.07 crore, along with a net profit of ₹2.44 crore.
On the first day of the IPO, the subscription status of Drone Destination Ltd received an overwhelming response. It was subscribed 8.95 times, indicating substantial investor interest. Retail investors led the way by subscribing 13.20 times, followed by qualified institutional buyers (QIBs) at 5.54 times and non-institutional bidders (NII) at 3.62 times, according to data on chittorgarh.com.
Additionally, topsharebrokers.com reported that the grey market premium (GMP) for Drone Destination shares stood at +48, indicating that shares were trading at a premium of ₹48 in the grey market on Friday. Based on the upper end of the IPO price band and the current grey market premium, market projections estimate the listing price for Drone Destination shares to be ₹113 apiece. This estimation reflects a significant 73.85% increase over the IPO price.
The grey market premium indicates investors’ willingness to pay a higher price than the issue price. It showcases their confidence and anticipation regarding the company’s prospects. Drone Destination Ltd’s IPO has received active subscription and strong investor response. The company awaits its listing on the NSE SME exchange. It expects a successful entry into the public market.
4th Floor, RK Niwash, Bailey Rd, near Ishan Int Girls School, Rupaspur, Patna, Bihar 801503
Don’t miss our future updates! Get Subscribed Today!
Get your queries solved within 12 hours
Download your copy now