Chennai-based drone technology firm Garuda Aerospace has taken a significant step toward a public market debut by confidentially filing its draft red herring prospectus with SEBI. The proposed initial public offering, potentially launching by late 2026, signals a new phase of growth for the company and the broader Indian drone industry. This move follows the company's previously stated ambition to go public, underscoring its rapid expansion and market confidence.
IPO Structure and Financial Preparations
The public issue is expected to comprise a fresh issue of shares worth up to $80 million and an offer for sale component of around $26 million. With a total target size of approximately $107 million, the company is reportedly aiming for a valuation between $429 million and $536 million. Proceeds from the fresh issue are earmarked for strategic investments in research and development as well as broader expansion initiatives.
In preparation for the listing, the company's board has approved key restructuring measures to enhance investor accessibility. A notable decision includes a 1:5 stock split, which reduces the face value of each equity share from $1 million to $214,000. This strategic action is designed to increase the liquidity of the company's shares in the market ahead of the IPO.
A Look at Company Performance
Garuda Aerospace has demonstrated a strong financial performance leading up to its public offering plans. For the fiscal year 2025, the company reported an operating revenue of $13 million and a net profit that surged by 41% to $2 million. This positive momentum continued into the first half of fiscal year 2026, with a recorded net profit of $1.17 million.
Operationally, the company has established a significant footprint in the Indian drone market, particularly in the agricultural sector where it holds an estimated 30% market share. Founded in 2015, it now serves over 100 government agencies and 500 private enterprises with its diverse fleet and services. The firm is also scaling its manufacturing capacity, aiming to produce up to 25,000 drones annually by the end of fiscal year 2026.
Strategic Growth and Investor Confidence
The company's growth has been supported by significant investor backing, having raised approximately $37.1 million in total funding to date. Its most recent Series B funding round secured $11 million at a post-money valuation of $250 million, led by Venture Catalysts. The startup also benefits from the high-profile association with cricketer Mahendra Singh Dhoni, who is both an investor and brand ambassador.
Further strengthening its global ambitions, Garuda Aerospace recently entered into a strategic partnership with Airbus Helicopters. This collaboration involves the acquisition of up to 18 advanced Flexrotor unmanned aerial systems for deployment across infrastructure, energy, and defence sectors. The alliance signals a strategic push into higher-endurance drone capabilities and supports the company's goal of expanding its international service portfolio.
Garuda Aerospace's filing for an initial public offering marks a pivotal moment for the company and a testament to the burgeoning Indian drone ecosystem. The planned listing will provide the necessary capital to fuel further innovation and expansion, solidifying its position as a market leader. This development will be closely watched as a key indicator of investor appetite for high-growth technology firms in the country.