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Automobile marketplace Droom files Rs 3,000-cr IPO papers

Droom Technology, an online marketplace for automobiles, has filed preliminary papers with capital markets regulator Sebi to raise Rs 3,000 crore through an initial share-sale

Topics
automobile industry | Droom | initial public offerings IPOs

Press Trust of India  |  New Delhi 

IPO

Technology, an online marketplace for automobiles, has filed preliminary papers with capital regulator Sebi to raise Rs 3,000 crore through an initial share-sale.

The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 2,000 crore and an offer for sale to the tune of Rs 1,000 crore by promoter Pte Ltd, according to the draft red herring prospectus (DRHP).

Promoters -- Sandeep Aggarwal and Pte Ltd -- hold 100 per cent stake in the company.

The company may consider a private placement of equity shares aggregating Rs 400 crore. If the pre-IPO placement is undertaken, the fresh issue size will be reduced.

Proceeds from the fresh issue will be utilized to fund organic as well as inorganic growth initiatives and general corporate purposes.

Droom, which competes with startups such as CarDekho, Cars24, Spinny and CarTrade, in July, announced that it is raising up to USD 200 million (over Rs 1,487 crore) in multiple tranches and has already raised a significant chunk of the amount.

It has previously raised about USD 125 million in funding from investors including Lightbox, Beenext, Digital Garage, Integrated Asset Management, Toyota Tsusho Corporation and others.

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

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, November 12 2021. 15:14 IST
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