Droneacharya Aerial hits 20% lower circuit as Sebi bars promoters for 2 yrs

Droneacharya Aerial Innovations shares hit a 20 per cent lower circuit on the BSE, at ₹45.38 per share. The selling pressure on the counter came after the Securities and Exchange Board of India (Sebi) issued an order in the matter regarding utilisation of initial public offer (IPO) proceeds and other related procedural aspects. 

 

At 9:59 AM, Droneacharya Aerial Innovations’ share price was trading 19.99 per cent lower at ₹45.38 per share on BSE. In comparison, the BSE Sensex was up 0.31 per cent at 85,970.44.

 

The company has a total market capitalisation of ₹108.86 crore. Its 52-week high was at ₹131 and 52-week low was at ₹45.38.   READ STOCK MARKET UPDATES TODAY LIVE 

 

“This is to inform you that the Securities and Exchange Board of India (Sebi) has issued order in the matter regarding utilisation of IPO proceeds and other related procedural aspects,” the filing read. 

 

According to the filing, Sebi has imposed a monetary penalty of ₹10 lakh on the company and ₹20 lakh each on Prateek Srivastava (Managing Director) and Nikita Srivastava (Director). Additionally, both directors have been restrained from accessing the securities market for two years.

 

The company stated that these penalties will not impact its daily operations, strong order book, or core business activities, as it does not engage in securities market trading. DroneAcharya is reviewing the order and plans to seek legal remedies.

 

“The penalty has no impact on the day-to-day functioning of the business. The company continues to have a strong order book and remains fully operational,” the filing read. 

 

According to Sebi’s official order investigation uncovered alleged misuse of IPO proceeds, inflated financials, and misleading corporate disclosures aimed at propping up the company’s share price.

 

“Having reasonable ground to believe that there was possible mis-utilisation of IPO proceeds, misrepresentation in financial statements, diversion of funds by the management of Droneacharya Aerial Innovations to the detriment of investors in the company in violation of the  provisions of the Sebi Act,” the order read.   ALSO READ | Quick Heal signs cyber security deal with NFSU-RIC; share price jumps 4% 

Further, the company raised ₹33.96 crore via its IPO between December 12–15, 2022, and listed its shares on the BSE SME platform on December 23, 2022.

 

According to Sebi’s findings, after listing, the company repeatedly issued exaggerated or “breakthrough” corporate announcements about its operations. Even after giving an undertaking on June 25, 2024, that it would be more careful with such disclosures, Droneacharya Aerial Innovations allegedly continued making reckless announcements.

 

Sebi also alleges that the promoters/directors misled investors by:

• Highlighting non-binding or trivial agreements as major deals
• Disclosing invalid revenue from Triconix
• Using misleading orders to induce investors to buy Droneacharya Aerial Innovations shares

The order further notes that Droneacharya Aerial Innovations used frequent operational updates and prominently displayed images of celebrities like Aamir Khan and Ranbir Kapoor on its website without their consent, to create buzz and attract investors.

 

Sebi says this pattern continued post-listing to sustain investor interest so that pre-IPO investors could exit at a profit. By November 15, 2024, 168 of 210 pre-IPO investors had sold 7.4 million shares for ₹114.25 crore, earning profits of ₹89.60 crore (about 78 per cent of sale value).