Stock of this SME company has zoomed 70% in 10 days after a stellar debut

Shares of Droneacharya Aerial Innovations locked at 10 per cent upper circuit to hit a new high of Rs 182.50 in Friday's intra-day trade. The BSE has revised circuit filter of the scrip to 10 per cent from 5 per cent with effect from today.

Around 682,000 equity shares changed hands, with pending buy orders for 400,000 shares on the BSE, the exchange data shows. In comparison, the S&P BSE Sensex was down 0.28 per cent at 60,184.

In the past 10 trading days, the stock of small and medium enterprise (SME) company has zoomed 70 per cent after a stellar debut on December 23, 2022. Droneacharya Aerial Innovations made a stellar debut as shares were listed at Rs 107.10 per share, a whopping 98 per cent premium over its issue price of Rs 54 per share on the BSE. Currently, the stock traded 238 per cent higher against its issue price.

The equity shares of Droneacharya Aerial were listed and admitted to dealings on the exchange in the list of ‘M’ group. The BSE SME scrips listed under the 'M' group are traded and settled on a net basis, whereas those under the 'MT' group are traded and settled on a gross basis. The market lot size of the scrip is 2,000 shares.

The company in its Initial Public Offer (IPO), which was open from December 13, 2022 to December 15, 202, had received a phenomenal response from the public at large. The issue of the company was oversubscribed by 262 times and garnered Rs 6,016.76 crore against the original issue of Rs 34 crore.

Droneacharya Aerial Innovations provides high-end ecosystem of drone solutions for multi-sensor drone surveys, data processing of drone data, which uses robust high configuration workstations, drone pilot training & specialized GIS training.

"According to NITI Aayog, India's UAV market is expected to expand to $50 billion over the next 15 years as drones are projected to substitute 80 per cent of operations carried out by manned aircraft," the company said.

Moreover, the company observed increased adoption of drones in India. Though both the industry and market in India are at a nascent stage, they foresee immense growth potential for both.

"A major thrust will be given by the willingness of the present Indian government to use drones for a variety of purposes, including crop mapping and surveillance of infrastructure projects, pushing the projected value of the domestic industry to approximately $421 million in 2021. According to a research, the Indian Unmanned Aircraft Vehicle market is projected to grow at a CAGR of 18 per cent during 2017-23," the company added.

That apart, drone technology has played a crucial role during the pandemic across healthcare product delivery, law enforcement, and e-Commerce delivery. Following the emergence of multiple usage across the globe, the government identified drone technology and its applications as the sunrise sector and started to put in considerable efforts, in order to promote indigenisation of drone technology in India.

"The liberalized regulatory framework and manufacturing incentives announced by the government will develop the country’s drone manufacturing ecosystem. This strategy will create a wide range of upstream and downstream business opportunities such as design and manufacturing drone components, assembly of drone products, development of software applications, enterprise solutions, and counter-drone technologies," the management said.