Regulator SEBI has imposed a two-year ban on Droneacharya Aerial Innovations Ltd (DAIL) and its promoters, after concluding that the company misused IPO proceeds, inflated financials and diverted funds following its 2022 public offering.
DAIL went public between December 12–15, 2022, raising ₹33.96 crore. Investigations covering fiscal years 2022-23 and 2023-24 revealed that only about ₹70 lakh of the roughly ₹28 crore earmarked for drone purchases was used as intended. The rest was diverted to unspecified uses, in breach of the IPO prospectus.
According to SEBI’s order, DAIL issued misleading and false corporate announcements after listing, aiming to create demand and artificially sustain share prices. This allowed pre-IPO investors to exit at inflated valuations — at the expense of public investors.The company is accused of inflating revenues and profits by including income from unrelated entities, and overstating expenditures on software and accessories.
Beyond the company and its promoters (managing director Prateek Srivastava and CFO-director Nikita Srivastava), SEBI also barred corporate advisory firm Instafin Financial Advisors LLP, its partner Sandeep Ghate, and Micro Infratech Pvt Ltd, citing their role in facilitating the violations.
In total, SEBI imposed monetary penalties aggregating ₹75 lakh: ₹20 lakh each on the two main promoters, ₹10 lakh each on DAIL, Instafin and Sandeep Ghate, and ₹5 lakh on Micro Infratech.
The order underscores that the company deviated from its stated IPO objectives without seeking shareholders’ approval and misrepresented its financial disclosures, amounting to a serious breach of market norms.
For investors, the decision is a stark reminder to scrutinise SME-listed firms and IPO disclosures carefully — especially on use of proceeds, related-party income, and legitimacy of pre-IPO funding rounds.
