Grabbing a manoeuvring target using drones is a challenging problem. This paper presents the design, development, and prototyping of a novel aerial manipulator for target interception. It is a single Degree of Freedom (DoF) manipulator with passive basket-type end-effector. The proposed design is energy efficient, light weight and suitable for aerial grabbing applications. The detailed design of the proposed manipulation mechanism and a novel in-flight extending propeller guard, is reported in this paper.