Dronetech Startup Garuda Aerospace Pre-Files Draft Papers For ₹750 Cr+ IPO

Chennai-based dronetech startup Garuda Aerospace has taken a significant step towards its initial public offering (IPO) by pre-filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). While the exact size of the IPO remains undisclosed, the company's board, through an extraordinary general meeting (EGM) held on March 19, approved an IPO that can include a fresh issue of up to ₹750 crore, alongside an undisclosed offer for sale (OFS) component.

The pre-filing of the DRHP is a critical step in the IPO process, as it allows the company to provide potential investors with essential information about its operations, financial performance, and growth prospects. Garuda Aerospace's board proposed that the company will be required to file subsequent documents, including the updated draft red herring prospectus I and II, the red herring prospectus, with the Regulatory Ombudsman Commission (ROC) and then with SEBI and the stock exchanges where the equity shares are proposed to be listed.

In addition to the IPO approval, the board also approved a stock split as part of its pre-IPO restructuring. This move reduces the face value of the company's equity shares from ₹10 to ₹2 each. The stock split is a common practice among companies preparing for an IPO, as it helps to increase the liquidity of the shares and make them more accessible to a broader range of investors.

Garuda Aerospace had previously signaled its intent to go public in 2023. In January 2023, the company's founder and CEO, Agnishwar Jayaprakash, told Inc42 that the company intended to complete its IPO within two years. This timeline appears to be on track, given the recent pre-filing of the DRHP.

On the financial front, Garuda Aerospace reported a net profit of ₹11 crore on an operating revenue of ₹41.2 crore in the first six months of the fiscal year 2026. This marks a strong performance, particularly when compared to the previous fiscal year. In FY25, the company's operating revenue grew by 12% year-on-year (YoY) to ₹123.5 crore, while its net profit increased by 41% YoY to ₹18.4 crore.

Founded in 2015 by Jayaprakash and Rithika Mohann, Garuda Aerospace has established itself as a leading player in the dronetech industry. The company manufactures drones catering to various sectors, including defence, agriculture, surveillance, and logistics. In addition to drone production, Garuda Aerospace also offers drone-as-a-service (DaaS) solutions, providing end-to-end drone management and operation services.

Garuda Aerospace claims to have trained over 1 lakh drone pilots, serving more than 100 government agencies and over 500 private enterprises. The startup's extensive training program highlights its commitment to fostering a skilled workforce in the rapidly growing drone industry. Furthermore, the company holds approvals from the Directorate General of Civil Aviation (DGCA) for type certification and operates a Remote Pilot Training Organisation (RPTO) for small and medium-class drones, ensuring compliance with regulatory standards and safety protocols.

The company's product portfolio includes over 30 types of drones, showcasing its versatility and ability to cater to diverse market needs. Garuda Aerospace's success can be attributed to its innovative approach to drone technology, strategic partnerships, and a strong focus on customer satisfaction.

As Garuda Aerospace prepares for its IPO, the company is poised to raise significant capital that can be used to expand its operations, invest in research and development, and further solidify its position in the global dronetech market. The IPO process will also provide valuable insights into the company's valuation and growth prospects, offering potential investors a chance to participate in the startup's journey towards becoming a leading player in the drone industry.

In conclusion, the pre-filing of the draft red herring prospectus by Chennai-based Garuda Aerospace marks a significant milestone in the company's journey towards an IPO. With a strong financial performance, a diverse product portfolio, and a commitment to training a skilled workforce, Garuda Aerospace is well-positioned to capitalize on the growing demand for drone technology across various sectors. The upcoming IPO will undoubtedly be closely watched by investors and industry analysts, as it represents an opportunity to invest in a company with a promising future in the dronetech sector.