Shares of Droneacharya Aerial Innovations locked in a 10% cap hit a new high of Rs 182.50 in intraday trade on Friday. The BSE has revised the stock circuit filter to 10% from 5%, effective today.

Exchange data showed that about 6.82 lakh shares changed hands on the BSE, with 4 lakh pending buy orders. The S&P BSE Sensex fell 0.28% to 60,184.

Shares of the small and medium-sized enterprise (SME) company have rallied 70% in the past 10 trading days following its December 23, 2022 debut. Droneacharya Aerial Innovations debuted at Rs 107.10 per share, a whopping 98% premium to the BSE issue price of Rs 54 per share. Currently, the stock is trading at a 238% premium to its issue price.

Shares of Droneacharya Aerial are listed on the exchange and are in the “M” group list. BSE SME shares listed under group ‘M’ are traded and settled on a net basis, while shares under group ‘MT’ are traded and settled on a gross basis. The trading lot size for a stock is 2,000 shares.

The company’s initial public offering (IPO), which will run from December 13, 2022, to December 15, 2022, has received an enthusiastic response from the public. The company’s offering was 262 times oversubscribed, raising Rs 6,016.76 crore from the initial issue of Rs 34 crore.

Droneacharya Aerial Innovations provides an ecosystem of high-end drone solutions for multi-sensor drone surveys and data processing and drone data using powerful high-configuration workstations, drone pilot training and professional GIS training.

“According to NITI Aayog, India’s drone market is expected to expand to $50 billion in the next 15 years, as drones are expected to replace 80% of operations performed by manned aircraft,” the company said.

Additionally, the company has observed the increasing adoption of drones in India. Even though the industry and market in India are nascent, they foresee colossal growth potential for both.

“India’s current government is willing to use drones for various purposes, including crop mapping and monitoring of infrastructure projects, which will bring the estimated value of the domestic industry to about $421 million by 2021. According to the study, the drone market in India is expected to grow at a CAGR of 18% between 2017 and 2023,” the company added.

In addition, drone technology has played a vital role in healthcare product delivery, law enforcement, and e-commerce deliveries during the pandemic. With multiple uses emerging globally, governments have identified drone technology and its applications as a sunrise industry. It started a big push to localise drone technology in India.

“The liberalised regulatory framework and manufacturing incentives announced by the government will develop the drone manufacturing ecosystem in the country. The strategy will create a wide range of upstream and downstream business opportunities, such as designing and manufacturing drone components, drone product assembly, software application development, enterprise solutions and anti-drone technologies,” management said.