Garuda Aerospace has filed its draft red herring prospectus (DRHP) through the confidential route earlier this week, marking a step towards a public listing as the drone maker looks to raise Rs 1,000 crore, according to sources familiar with the development.
The proposed issue is expected to comprise a fresh issue of Rs 750 crore and an offer for sale (OFS) of Rs 250 crore. The company is targeting a valuation in the range of Rs 4,000–5,000 crore, with a potential listing timeline by December 2026.
“Proceeds from the fresh issue will be deployed towards research and development as well as expansion initiatives,” a person with knowledge of the development said.
Bankers on the Garuda IPO include SBI Capital, Axis Capital, ICICI, and IIFL.
Garuda Aerospace declined to comment on queries regarding the development sent by FE.
Garuda has drawn investor interest from a mix of institutional and individual backers. Venture Catalysts and We Founder Circle are among its early investors, while cricketer Mahendra Singh Dhoni holds a stake and continues to be associated with the company as a brand ambassador.
Founded in 2015 and headquartered in Chennai, Garuda Aerospace operates across agriculture, defence, and industrial applications. The company has manufactured and deployed over 5,000 drones globally and serves more than 500 enterprise and government clients. The firm was founded by Agnishwar Jayaprakash and Rithika Mohan.
Scaling Production
The company currently holds approximately 30% market share in India’s agricultural drone segment and continues to expand its footprint across defence, industrial inspection, and international drone services markets.
On the operational front, Garuda has scaled up manufacturing capacity doubling production to 25,000 units by the end of FY26, from 12,000 in FY25. The production ramp was supported by investments in new facilities and export-focused deliveries.
Financially, the company has shown steady growth, with revenue reaching around Rs 125 crore in FY25 and profit of around Rs 20 crore. Garuda last raised funds in August last year through a Series B round. Across funding rounds, it has raised $49.5 million (approx. 461 crore), and its post money valuation in August stood at $260 million (approx. Rs 2420 crore), according to data available on Traxcn.
Strategic Alliances
The IPO move comes alongside a series of recent strategic developments aimed at strengthening Garuda’s global positioning. Most notably, the company has entered a partnership with Airbus Helicopters to acquire up to 18 Flexrotor unmanned aerial systems.
These systems are expected to be integrated into Garuda’s fleet and deployed across sectors such as infrastructure monitoring, energy, defence, and disaster response. The partnership signals a push into higher-end, long-endurance drone capabilities and supports the company’s ambition to scale its international services portfolio.