Droneacharya shares plunge 20% after SEBI’s two-year ban on promoters

Shares of Droneacharya Aerial Innovations tanked nearly 20% on Monday, hitting the lower circuit on the BSE SME platform, a day after SEBI barred the company and its promoters from accessing the securities market for two years. 

The stock fell to Rs 45.38 as investors reacted sharply to the regulator’s findings. Droneacharya had made its market debut in December 2022, listing at around Rs 102, nearly 90% above its issue price of Rs 54.

The sell-off followed SEBI’s detailed order, which uncovered multiple violations by the Pune-based drone startup. The regulator said Droneacharya diverted IPO proceeds, inflated revenues, issued misleading corporate announcements, and carried out undisclosed related-party transactions. 

In its order, SEBI said the promoters had “knowingly misrepresented” the company’s financials and disclosures, creating a false impression of growth and business activity. The regulator added that the scale and nature of these violations warranted a two-year ban on both the company and its promoters to protect investor interest and uphold market integrity. 

SEBI also imposed a total penalty of Rs 75 lakh on the company.

With the regulator calling out serious lapses in disclosures and financial reporting, the market reaction was immediate. The 20% crash reflects shaken investor confidence and signals how quickly sentiment can reverse when compliance failures come to light.