Why This Shankar Sharma-Backed Micro Cap Stock Is Surging 8% Today

Shares of Droneacharya jumped close to 8% on Wednesday to hit an intraday high of ₹190.25.

What Happened: After a flat start, the stock received a bump as the company announced signing a franchise deal with Wollstone Capital SA, a Switzerland-based private investment holding company.

The major purpose of the partnership is to open thirty (30) remote pilot training organizations (RPTO) across India to boost Drone sales, services and certified training, the company said in an exchange filing. The deal entered between Droneacharya and Wollstone amounts to $2.7 million (₹23 crore).

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The company said that the association will help it become an integral source of major development in the drone sector as it will increase the number of RPTOs by a significant number.

Earlier in the month, the company launched BHUJANG (Battlefield Hybrid UAV for Joint Attack, Navigation and Guarding). It is a heavy lift-off, super-high-altitude, long-range drone with multiple capabilities. The announcement saw the stock surge up 20%. As per the latest shareholding pattern (March 2023), ace investor Shankar Sharma owns a 1.91% stake in the company.

Price Action: Droneacharya's share price was up 4.46% to trade at ₹183.90 in early trade on Wednesday.

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