Chennai-based drone technology startup Garuda Aerospace has received final observation from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO) worth up to ₹750 crore. The approval clears the way for the company to launch its public issue, following a confidential pre-filing earlier this year. The IPO includes a fresh equity share issue and an offer-for-sale component.
Garuda Aerospace pre-filed its draft red herring prospectus (DRHP) with SEBI in April through the confidential route, which allows companies to keep financial and valuation details private until proceeding with the offering. The startup’s board approved the IPO in March, comprising a fresh issue of equity shares worth ₹750 crore and an offer-for-sale component possibly amounting to ₹250 crore. The company also approved a stock split reducing the face value of shares from ₹10 to ₹2 as part of pre-IPO restructuring.
Founded in 2015 by Agnishwar Jayaprakash and Rithika Mohan, Garuda Aerospace manufactures drones for defence, agriculture, surveillance, and logistics, alongside drone-as-a-service solutions and remote pilot training. The startup has trained over 100,000 drone pilots and serves more than 100 government agencies and 500 private enterprises. The IPO is expected to provide capital to scale its manufacturing and service offerings amid growing demand for drone technology in India.
Garuda Aerospace is expected to soon file its updated draft red herring prospectus (UDRHP) with SEBI, marking a key step toward its public listing. The company’s IPO will be closely watched as one of the significant public offerings in the Indian drone sector this year.