Adding to the “IPO Tsunami” hitting the Indian markets this week, Chennai-based drone leader Garuda Aerospace has officially filed its Draft Red Herring Prospectus (DRHP) to raise ₹1,000 crore. In a strategic move to keep its competitive financials under wraps during the initial review, the company has opted for the “Confidential Pre-filing” route with SEBI.
This filing follows a major pre-IPO restructuring, including a 1:5 stock split (reducing face value from ₹10 to ₹2) to improve liquidity for retail investors ahead of the anticipated late-2026 listing.
1. The IPO Structure: ₹1,000 Crore Breakup
The issue is designed to provide a massive capital injection for R&D while allowing early backers to partially exit.
| Component | Amount | Purpose / Detail |
| Fresh Issue | ₹750 Crore | Primary capital for R&D, scaling manufacturing, and a new “Defence Drone Park.” |
| Offer for Sale (OFS) | ₹250 Crore | Secondary sale by existing promoters and early-stage investors. |
| Target Valuation | ₹4,000–5,000 Cr | Aiming for a significant premium over its 2025 Series B valuation. |
| Lead Managers | SBI Capital, Axis Capital, ICICI Securities, and IIFL. |
2. Strategic Goal: The “Cheyyur Defence Park”
A primary driver for this ₹1,000 crore raise is Garuda’s pivot into high-end military hardware. The company is developing a 76-acre dedicated defence drone facility at Cheyyur, Tamil Nadu.
- Precision Strikes: The park will focus on the research and testing of swarm drones and “canister-dropping” systems for active battlefield scenarios.
- Global Alliances: The capital will support Garuda’s recent partnership with Airbus Helicopters to integrate up to 18 “Flexrotor” unmanned systems into its fleet.
- Manufacturing Surge: Garuda aims to double its production capacity to 25,000 units by the end of FY26, up from 12,000 in FY25.
3. Financial Performance (FY25 Actuals)
Despite its startup status, Garuda has maintained profitability, a rarity among the current wave of tech IPOs.
- Operating Revenue: ₹123.5 Crore (↑ 12% YoY from ₹110 Crore).
- Net Profit (PAT): ₹18.4 Crore (↑ 41% YoY).
- Market Share: Currently holds a dominant 30% share of India’s agricultural drone segment.
- Funding History: Has raised approximately $49.5 million to date, with early backers including cricketer MS Dhoni, who also serves as the brand’s ambassador.
4. The “Confidential” Trend
Garuda joins a growing list of high-profile Indian startups—including Zepto, PhonePe, and PhysicsWallah—that have chosen the confidential filing route in early 2026.
- Privacy: This allows the company to defer the public disclosure of its sensitive internal metrics until much closer to the actual listing date.
- Flexibility: It gives the management more room to adjust the issue size or valuation based on real-time feedback from the regulator without the pressure of public scrutiny.
5. Competitive Landscape: The “Drone War”
As Garuda moves toward its December 2026 listing target, it will be benchmarked against established players like ideaForge and Paras Defence. However, with its diversified play across Agriculture (Drones-as-a-Service) and Defence, Garuda is positioning itself as the more versatile “infrastructure” play in the UAV sector.
