Defence, inspection and survey drone company offers a 26% stake
A Maharashtra-based Private Limited company building tactical drones and GIS software for defence, infrastructure and government clients.
Opportunity in brief
The company designs low-cost drones and writes its own GIS software. It sells to the armed forces, to infrastructure operators and to government survey departments. The promoters are selling a minority stake and want a partner who can bring defence orders.
At a glance
Basis of preparation. All information is as supplied by the company and has not been verified by the adviser.
Financial statements, order book and approvals are released with the information memorandum.
Business lines
The company operates three lines, each aimed at a different buyer.
Defence surveillance
Tactical, logistics and communication drones for the armed forces.
Infrastructure inspection
Drone inspection of utilities, solar farms and transmission lines.
Survey and mapping
Civil survey, mapping and photography for government and private clients.
Investment highlights
Defence-facing product line
Tactical, logistics and communication drones, with a record of supply to the Indian defence sector, per management.
DefenceOwn software and designs
Proprietary GIS software and low-cost drone designs are developed in-house.
Software + hardwareMixed client base
Clients include the defence sector, two large Indian corporate groups and government departments.
Corporate + governmentStated growth plan
More manufacturing capacity, AI-based drone operating systems, and new domestic and export markets, including Africa.
Domestic + AfricaEngineering-led team
The team combines manufacturing and deep-tech experience and is developing next-generation drones for the armed forces.
In developmentThe proposition
The promoters offer a 26% equity stake. Management is looking for a partner with defence order access and financial strength, as set out below.
Transaction parameters
Defence order access
Strength in procuring orders from the defence sector.
Financial strength
A strong financial background to fund expansion.
Strategic intent
Seeking to enter or expand in India's drone ecosystem.
Management sees the closest fit with infrastructure companies and defence players.
Risks and considerations
Defence orders are a gap
Defence is the stated growth focus, and management itself seeks a partner who can win defence orders. Order sourcing is a gap the buyer is expected to fill.
Profitability not yet evidenced
Management cites a record of profitability. Revenue, margin and order-book figures come with the information memorandum, so the price cannot be tested until then.
Key products in development
The AI-based operating systems and next-generation defence drones are under development. They are not yet revenue lines.
Defence approvals not stated
The certifications and clearances needed to supply the armed forces are not described. Buyers will ask for them first.
Process and next steps
Enquiries go to CA Dhiraj Ostwal & Co. — Transaction Advisory, and not to the company or its staff.
Disclaimer. This teaser is issued by the adviser for discussion only. It does not identify the company, is not an offer or invitation to subscribe for or buy any security, and forms no basis for any contract. Information comes from the company, has not been independently verified, and no representation is made as to its accuracy or completeness. Recipients must keep it confidential and conduct their own diligence.