Droneacharya Aerial Innovations Limited IPO, which opened for subscription on Tuesday, garnered a stellar response from investors on day one of bidding, The BSE SME IPO has been subscribed 22.94 times, and its retail portion has been subscribed over 37.89 times. While the Non-Institutional Investor category (NII) was subscribed 17.25 times, Qualified Institutional Buyer (QIB) category was subscribed 1.03 times on the first day, according to the Droneacharya IPO subscription status. Droneacharya Aerial Innovations shares are commanding a grey market premium (GMP) of Rs 65, which is up 120 per cent over its price band of Rs 52 – Rs 54 per equity share.
The high GMP suggests that the grey market is expecting that allottees’ money is likely to get doubled on listing day. Droneacharya is the first drone start-up company in India. It aims to raise approximately Rs 34 crore through a new issuance of shares. The company said that it will use the book-building procedure to offer 62.90 lakh shares (Rs 10 paid up). Of this, 8.98 lakh shares are reserved for HNI’s, 11.94 lakh shares are reserved for QIB’s and 20.92 lakh shares are reserved for retail investors. The shares of the company will be listed on BSE SME Exchange. The fresh funds raised will be utilised to purchase and manufacture drones, sensors and processing infrastructure, Droneacharya said.
Ahead of the IPO, the company had mopped up Rs 54 crore from anchor investors. The company said it allocated a total of 17.90 lakh equity shares to 4 anchor investors at Rs 54 per share. Of the 4 anchor investors, Aegis Investment Fund has been allocated 3.72 lakh shares, Maven India Fund (5.72 lakh shares), Nav Capital VCC-NAV Capital Emerging Star Fund (3.96 lakh shares), and Zinnia Global Fund (4.50 lakh shares).
It is worth noting that nearly 75% of the total shares listed in 2022 are trading higher from their issue price. So far this year, around 37 firms came out with IPO plans to collectively raise over Rs 58,500 crore. About 33 firms have listed on exchanges in 2022, of which nearly 25 companies are trading higher from their issue prices. Sula Vineyards, Abans Holdings, Landmark Cars and KFin Technologies are the four companies whose shares will list on exchanges by the year-end and they too are trading 5-10 percent higher in the grey market.