Droom Technology Limited, a technology and data science-driven online automobile ecommerce 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.
The initial public offering (IPO) consists of equity shares of face value of Rs 1 each of Droom Technology. The offer comprises of fresh issue of aggregating up to Rs 2,000 crore and an offer for sale of up to Rs 1,000 crore. The equity shares of the company will be listed on the BSE and NSE.
As a part of the OFS, Droom 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 SEBI.
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.
Droom is a technology and data science company that facilitates automobile buying and selling online through a combination of their asset light ecommerce 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 expanding to 38 countries.