Garuda Aerospace Gets SEBI Nod for ₹750 Crore+ IPO: Drone Startup Moves Closer to Public Listing

Garuda Aerospace, one of India’s prominent drone technology companies, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its proposed initial public offering (IPO), marking a major milestone in the company’s journey toward becoming a publicly listed drone player. The approval comes as India’s drone industry continues to gain momentum across defence, agriculture, surveillance, logistics and industrial applications.

The Chennai-based company had earlier moved toward the public markets by filing its draft offer documents through the confidential route. Its proposed IPO is expected to include a fresh issue of up to ₹750 crore, along with an offer-for-sale (OFS) component. Earlier reports indicated that the overall issue could be around ₹1,000 crore, although the final structure, price band and issue details will be known closer to the IPO.

Garuda Aerospace IPO: Key Details

Garuda Aerospace’s IPO is expected to comprise a fresh issue of up to ₹750 crore and an OFS component. Earlier reports had indicated an overall issue size of approximately ₹1,000 crore, including a potential ₹250 crore OFS. The company has been targeting a valuation in the range of ₹4,000–5,000 crore.

The fresh capital is expected to support the company’s growth plans, including research and development, manufacturing expansion and other business initiatives. The company’s proposed listing is expected toward the end of 2026, subject to completion of regulatory and IPO-related processes.

SEBI approval does not mean that the IPO will immediately open for subscription. Garuda Aerospace will still need to complete the remaining regulatory and market-related steps before announcing the final IPO timetable, price band and other offer details.

What Does Garuda Aerospace Do?

Founded in Chennai in 2015, Garuda Aerospace operates across several drone applications, including agriculture, defence, surveillance, logistics and industrial services.

The company initially built a strong presence in agricultural drones before expanding into defence and other specialised applications. Its growing exposure to defence technology has become particularly important as India focuses on strengthening domestic manufacturing and reducing dependence on imported defence equipment.

Garuda has also developed partnerships and business relationships across the technology and defence ecosystem. Its association with well-known investor and former Indian cricketer MS Dhoni, who has backed the company and serves as its brand ambassador, has also increased public visibility around the startup.

Financial Performance

Garuda Aerospace has been growing its business while remaining profitable. Reports based on company filings indicate that the company recorded operating revenue of around ₹118 crore in FY25, while its profit after tax was approximately ₹17–18 crore.

The company’s financial performance will be closely watched by prospective IPO investors. While profitability provides a positive foundation for the public issue, investors will also examine revenue growth, margins, cash flows, working-capital requirements and the company’s ability to scale its operations.

This is particularly important because drone manufacturing is a capital-intensive and rapidly evolving industry. Sustained investment in technology, research, manufacturing capabilities and product development will be essential for companies looking to compete in the long term.

Defence and Drone Industry Tailwinds

India’s drone ecosystem has expanded rapidly over the past few years, supported by increasing applications in agriculture, defence, disaster management, mapping, surveillance and infrastructure inspection.

The defence sector represents one of the biggest potential growth areas. Governments around the world are increasingly using unmanned aerial systems for surveillance, reconnaissance and tactical operations, while India is also encouraging domestic development of defence technologies.

Garuda Aerospace has been increasing its focus on defence-oriented drone solutions, positioning itself to benefit from this broader shift toward indigenous drone manufacturing.

The company is also developing capabilities across multiple drone categories rather than relying on a single application. This diversification could help it address opportunities in agriculture, defence and commercial markets.

Why the IPO Matters

Garuda Aerospace’s public listing could be significant for India’s emerging drone ecosystem.

The Indian stock market already has listed companies with exposure to the drone industry, including ideaForge Technology and DroneAcharya Aerial Innovations. A successful Garuda Aerospace IPO would provide investors with another listed opportunity to participate in India’s growing drone and defence-technology ecosystem.

More importantly, a successful public issue could help demonstrate that Indian drone companies can attract significant institutional and retail capital to fund expansion and technology development.

The IPO would also provide greater visibility into the company’s financial performance, business model and growth strategy once it becomes a listed entity.

Use of IPO Proceeds

The fresh issue component is expected to provide Garuda Aerospace with substantial capital for expansion.

Earlier reports indicated that the company intends to use the proceeds for research and development and expansion initiatives.

For a technology-driven company, continued R&D investment is particularly important. Drone technology is evolving rapidly, with developments in autonomous flight, artificial intelligence, navigation systems, sensors and defence applications.

Additional capital could allow Garuda to expand its manufacturing capabilities, develop new drone platforms and strengthen its presence in high-growth segments.

What Investors Should Watch

Although SEBI approval is an important positive development, investors should wait for the final IPO documents before making any investment decision.

Key factors to watch will include:

Final IPO size and price band Fresh issue versus OFS composition Company valuation Revenue and profit growth Cash-flow performance Use of IPO proceeds Defence and government order pipeline Competition within India’s drone industry Future R&D and manufacturing investments

The valuation will be particularly important. A high-growth industry can attract strong investor interest, but expectations embedded in the IPO valuation need to be supported by sustainable revenue and earnings growth.

A Major Step for India’s Drone Industry

Garuda Aerospace’s SEBI approval comes at an important time for India’s drone sector. With demand increasing across defence, agriculture, surveillance and commercial applications, the industry is moving from an emerging technology segment toward a larger industrial opportunity.

For Garuda Aerospace, the IPO could provide the capital required to accelerate its growth while giving public-market investors exposure to the expanding drone and defence-technology ecosystem.

However, the company’s long-term success will depend on its ability to convert technological capabilities and market opportunities into consistent revenue, profitability and cash generation.

With the IPO now moving closer to the market, investors will be watching the company’s final offer documents, valuation and issue structure closely. If successfully executed, Garuda Aerospace’s listing could become another important milestone in the development of India’s domestic drone industry.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the final IPO offer documents and consult a SEBI-registered investment adviser before making investment decisions.