Droom Technology files for IPO to raise ₹3000 crore for development

The company plans to utilise the amount from the IPO to fund organic & inorganic growth initiatives amounting to ₹1,150 crores & ₹400 crores respectively.

Droom Technology Limited, a technology and data science-driven online automobile e-commerce platform has filed preliminary papers with capital market regulator Sebi to raise funds through an initial share sale. With this move, it now becomes the second Indian automobile online company to go public after CarTrade.

According to the statement the IPO consists of equity shares of ₹1 each of Droom Technology.  The offer comprises of fresh issue of a total of ₹2,000 crores and an offer for sale of up to ₹1,000 crores. The equity shares of the company will be listed on the BSE and NSE. Droom Pte. Ltd is based in Singapore & will sell up to ₹1000 crores, according to the draft red herring prospectus (DRHP) filed with SEBI. The fresh issue size can also be reduced as the company is further consulting with lead bankers.

The company plans to utilise the amount from the IPO to fund organic & inorganic growth initiatives amounting to ₹1,150 crores & ₹400 crores respectively.

Droom is a technology and data science company that facilitates automobile buying and selling online through a combination of their asset-light e-commerce platform with a vertically integrated ecosystem of products and services for the automobile industry. With an international presence in Malaysia which commenced operations in 2018, and later expanded to 38 countries.

According to data presented by Droom it has observed 89.27mn visits on its website/app and has 20,725 Auto Dealers, present in 1,151 cities. It has 2,78,807 used vehicles in 11 categories listed valued at Rs.146.49 bn, and it sold 56,412 vehicles and has a GMV of Rs 59,347.25 mm

ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Limited, HSBC Securities and Capital Markets (India) Limited and Nomura Financial Advisory and Securities (India) Private Limited are the running lead managers to the issue.

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