Drone Destination Ltd, a leading drone service provider, has made a strong start with its initial public offering (IPO). On the first day, the IPO has been subscribed 8.95 times, indicating high investor interest. Drone Destination Ltd has set the price range for its IPO at ₹62-65 per share. Drone Destination Ltd aims to generate ₹44.20 crore through its public offering by selling its shares to the public.
The IPO, which began on July 7 and will continue until July 13, is an entirely fresh issue of equity shares. The proceeds from the IPO will be utilized for new drone purchases, capital investments, and other general company purposes.
The shares are distributed among different types of investors. Individual investors have a 15% share allocation, while large institutional buyers are given 50%. The remaining 35% is open for regular retail investors to participate in. The final allocation will take place on July 14.
Drone Destination Ltd has reported impressive financials, with revenues of ₹12.07 crore and a net profit of ₹2.44 crore for the year ending March 2023. These positive figures have contributed to the strong response from investors.
The IPO subscription status shows overwhelming demand, particularly from retail investors, whose portion was subscribed 13.20 times. Qualified institutional buyers and non-institutional bidders also showed significant interest, with subscription levels of 5.54 times and 3.62 times, respectively.
In the grey market, the Drone Destination IPO is trading at a premium of ₹48. This indicates investors' willingness to pay a higher price than the IPO offer. Based on the upper end of the price band and the current grey market premium, the estimated listing price for Drone Destination shares is ₹113, representing a significant increase of 73.85% from the IPO price.
The IPO of Drone Destination has generated excitement among investors, reflecting their confidence in the company's prospects. As the IPO progresses, market participants eagerly await the final listing and anticipate a positive outcome for both the company and investors.