Drone Destination IPO: How to Check Allotment Status

Drone Destination IPO worth ₹44.20 crore, comprises entirely of a fresh issue and there is no offer for sale component. Drone Destination IPO entails issue of 68 lakh shares which at the upper band of the price range at ₹65 per share aggregates to ₹44.20 crore. The stock has a face value of ₹10 and the price band is ₹62 to ₹65. The retail bidders can bid in minimum lot size of 2,000 share each. Thus, the minimum investment of ₹130,000 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO.

HNIs can invest in 2 lots of 4,000 shares worth ₹260,000 as the bare minimum investment. There is no upper limit for the HNI / NII category. Drone Destination Ltd will deploy the funds buying new drones, new vehicles and for other capex and working capital needs. Post the IPO, the promoter equity in the company will get diluted from 85.14% to 62.31%. The issue is lead managed by Narnolia Financial Services Ltd, while Maashitla Securities Private Ltd will be the registrars to the issue. Here is a quick look at how the allocation was made across different categories of investors.

The response of Drone Destination IPO was phenomenal and it was subscribed 191.65X overall at the close of bidding on 13th July 2023 with the retail segment seeing 250.09 times subscription and the non-retail portion seeing 243.85 times subscription. The QIB portion was also subscribed by 50.46 time, albeit relatively modest. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 13th July 2023.

The basis of allotment will be finalized on Monday, 18th July 2023, the refunds will be initiated on 19th July 2023, demat credits will be finalized on 20th July 2023, while the stock of Drone Destination Ltd will get listed on the NSE SME segment on 21st July 2023. The company had a pre-IPO promoter holding of 85.14% and post the IPO, the promoter stake in Drone Destination Ltd will stand reduced to 62.31%. On listing, the company will have an indicative P/E ratio of 64.35X.

How to check the allotment status. Since this is an NSE SME IPO, there is no facility to check on the exchange website and BSE only offers allotment status mainboard IPOs and for BSE SME IPOs. If you have applied for the IPO, you can either check your allotment status directly on the website of the IPO registrar, Maashitla Securities Private Limited. Here are the steps that you need to follow to check allotment status.

Checking the allotment status of Drone Destination Ltd on the website of Maashitla Securities Private Ltd (Registrar to IPO)

Visit the Maashitla Securities Private Limited (IPO registrar to Drone Destination Ltd) website for IPO status by clicking on the link below:

https://www.maashitla.com/allotment-status/public-issues

If you are not able to click on the link above, you can directly cut the above link and paste it on your browser. That will also work. When you click on the above link, the landing page will look as shown in the screenshot below.

This dropdown will show the active IPOs and also the IPOs that are being managed by the registrar but not yet active. However, you can access the online allotment status only after the allotment status is finalized for Drone Destination Ltd. At that point, you can go and select the company (Drone Destination Ltd) from the drop down box. The allotment status will be finalized on Tuesday, 18th July 2023, so in this case, you can access the details on the registrar website either late on 18th July 2023 or by middle of 19th July 2023. Once the company is selected from the dropdown box, you have 3 methods to check the allotment status for the IPO.

1. Firstly, you can query for the application status based on your mapped Income Tax PAN number. Once you select PAN (permanent account number) from the dropdown menu, enter your 10-digit PAN number, which is an alphanumeric code. The first 5 characters ad alphabets, sixth to ninth characters are numerical while the last character is once again an alphabet. The PAN number will be available on your PAN card or on top of your income tax returns filed. Once you enter the PAN, click on the Submit Button.
    
2. Secondly, you can also access the allotment status with Application Number / CAF Number. Enter the Application / CAF number and then click on Search Button. Enter the application exactly it is given in the acknowledgement slip given to you post the IPO application process. After that you can click on the Submit button to get the details of shares allotted to you in the IPO.
    
3. Lastly, you can also search by Beneficiary ID of your demat account. You have to then enter the combination of the DP id and the Client id as one single string. Remember that the NSDL string is alphanumeric while the CDSL string is a numeric string. Just enter the combination of DP id and customer id as it is. The details of your DP and client ID are available in your online DP statement or in the statement of account. After that you can click the Submit Button in both cases.

You can follow any of the 3 steps above. The IPO status with number of shares of Drone Destination Ltd allotted will be displayed on the screen. You can save a screenshot of the screen for future reference. Once again, you can verify the demat credit by the close of 20th July 2023.

Here is a quick word on the Drone Destination business model. Drone Destination Ltd, is an SME IPO on the NSE which opened for subscription on 07th July 2023. Here is a quick background of the company. Drone Destination is a DGCA (Directorate General of Civil Aviation) authorized Remote Pilot Training Organization. Along with its sister company, Hubblefly Technologies, they have jointly developed an integrated and comprehensive drone eco-system predicated on drone manufacturing, certified training, services, and rent a drone services. Drone Destination Ltd is manned by a team of Aviation & Drone Experts with a combined experience of over 350 man years with flagship training centre at Manesar.

The company runs the largest network of DGCA-certified Drone Pilot Training Programs and has trained over 1,000 drone pilots till date. It operates 8 Drone Hubs and plans to use the IPO funds to open another 150 Drone Hubs, over the next three years. These drone hubs will offer drones on rent, with certified pilots, drone enterprise solutions, repair, and maintenance support as well as specialised training on the operation of drones. It has currently deployed 25 drone teams to conduct village level mapping across 3 major states of UP, Gujarat and Andhra Pradesh. Drone Destination is a play on the growing UAV industry.