Rs 11,80,000 Order, Contract From Indian Army Won By SME IPO: Defence Stock Rises By 260% Since Listing

Droneacharya Aerial Innovations, an SME IPO been on a gaining spree for two consecutive trading sessions, rising by 7% on BSE. This drone stock is only listed on BSE and has emerged as a multi-bagger with over 260% upside since listing. The latest rally in ace investor Shankar Sharma-backed stock is due to a massive order win from the Indian Army and Defence Ministry.

On January 15, Droneacharya's stock price ended at Rs 194.60 apiece, up by 3.51% on BSE with a market cap of Rs 466.82 crore.

The stock has gained by as much as 260.37% since its IPO listing compared to the public offer's issue price. DroneAcharya was listed on December 23, 2022, and the closing price on listing day stood at Rs 107.10 apiece, recording a bumper listing at a 98.33% premium against the IPO issue price of Rs 54 apiece.

The highest level of gain by DroneAcharya stock price is 351% when it hit a new all-time high of Rs 243.35 apiece which was recorded in less than a month on January 12, 2023, on BSE. Since then, the prices have corrected but Droneacharya still gives triple-digit returns to investors.

Since the start of 2024, DroneAcharya has won major orders and carried massive acquisitions as well.

As per the regulatory filing, DroneAcharya secured a prestigious contract from the Indian Army, Ministry of Defence. The contract entails providing Capacity Building and Advanced Drone Training at the Mechanised Army Courses Group, Ahmednagar.

Under this new order, DroneAcharya will be responsible for training Senior officers of the Mechanised Army Courses Group, MIC&S, Ahmednagar, as proficient Drone Pilots. The training program will also encompass the utilization of drones for Disaster Management purposes, showcasing the versatile applications of drone technology in critical scenarios.

DroneAcharya said this significant achievement underscores DroneAcharya's commitment to excellence and innovation in the field of aerial technology. The company takes pride in contributing to the national defence infrastructure by empowering military personnel with cutting-edge drone capabilities.

Meanwhile, Prateek Srivastava, Founder and Managing Director at DroneAcharya said, "The growing number of capacity-building tenders by the Indian Army reflects the growing recognition of the effectiveness of drones in executing various tactical missions, even in challenging and demanding conditions. This contract not only marks a milestone for DroneAcharya but also exemplifies the increasing adoption of drone technology within the Defence sector."

Additionally, in its filing on January 11, DroneAcharya said, it has been awarded a prestigious tender worth Rs11,80,000.00 by the Indian Defence System. The company will undertake advanced drone pilot training and GIS (Geographic Information System) training for 20 officers from the Northern Command Pre-Induction Training School at Bhalra, Jammu and Kashmir. This achievement marks a significant milestone for DroneAcharya as it demonstrates the increasing integration of drones into the Indian Defence System, coupled with the need for professional training to harness their full potential.

Furthermore, as the only Private DGCA (Directorate General of Civil Aviation) certified drone pilot training organization in India to have conducted over 580 trainings, DroneAcharya has also successfully delivered more than 200 drone pilot training sessions for various Defense organizations across the country.

DroneAcharya Aerial Innovations looks forward to a successful collaboration with the Indian Army and, the Ministry of Defence, and is poised to deliver exceptional results in the realm of Capacity Building and Advanced Drone Training.

In the first week of January, DroneAcharya also acquired a majority stake, i.e. 51% in PYI Technologies. This strategic move is in alignment with DroneAcharya's business objectives and represents a key milestone in its growth strategy.

Shankar Sharma who is a seasoned investor and esteemed financial analyst, picked up Droneacharya shares during the IPO days which was from December 13 to December 15 last year. The IPO had a price band of Rs 52 to Rs 54 per share and was oversubscribed by a whopping 243.70 times. As of September 30, 2023, Shankar Sharma holds 4,57,000 equity shares or 1.91% stake in the company.

DroneAcharya, founded in 2020, started its journey by becoming the training hub for drones in India by designing industrial application-based Drone Courses. The aim of DroneAcharya has always been to believe in training the next generation to become extremely skilled in the UAV+Geospatial industry.