You are here: Home » Companies » News
Business Standard

Auto e-commerce platform Droom files DRHP to raise Rs 3,000 crore in IPO

The offer comprises a fresh issue of aggregating up to Rs 2,000 crore and an offer for sale of up to Rs 1,000 crore

Topics
Droom | IPO | Automobile

Deepsekhar Choudhury  |  Bengaluru 

Sandeep Aggarwal of Droom at his office in Gurugram. Photo: Sanjay K Sharma
Sandeep Aggarwal of Droom at his office in Gurugram. Photo: Sanjay K Sharma

Auto ecommerce platform has filed its draft red herring prospectus (DRHP) with markets regulator to raise Rs 3,000 crore in an initial public offering. The offer comprises a fresh issue of aggregating up to Rs 2,000 crore and an offer for sale of up to Rs 1,000 crore.

As a part of the OFS, Pte. Ltd, is the holding company based in Singapore, will sell up to Rs 1000 crore, according to the draft red herring prospectus (DRHP) filed with

Additionally, the company, in consultation with the lead bankers to the issue may consider a further issue of equity shares including a private placement aggregating up to Rs 400 crore. If such placement is completed, the fresh issue size will be reduced.

The company intends to utilise the net proceeds from the fresh issue to fund organic and inorganic growth initiatives aggregating to Rs 1,150 crore and Rs 400 crore respectively and towards general corporate purposes.

For the six months ended September 30, 2021, it has seen 89.27 million visits on its website and app, and has a network of 20,725 auto dealers present in 1,151 cities. It has 2,78,807 used vehicles in 11 categories listed valued at Rs 14,649 crore on its platform, and it sold 56,412 vehicles with a GMV of Rs 5,935 crore in H1 of FY22.

Its revenue in the June quarter was Rs 79 crore and it registered a net loss of Rs 33 crore in the period. Its revenue shrank 27 per cent from Rs 172 crore in FY20 to Rs 125 crore in FY21. Its losses reduced 23 per cent from Rs 90 crore in FY20 to Rs 69 crore in FY21.

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 book running lead managers to the issue.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, November 12 2021. 15:53 IST
RECOMMENDED FOR YOU
.