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Droom Technologies files IPO papers, aims to raise Rs 3,000 crore

ICICI Securities, Edelweiss, Axis Capital, HSBC and Nomura are the lead book running managers. Kfin Technologies is the registrar for the offer

November 12, 2021 / 01:40 PM IST

Droom Technologies, the automobile e-commerce platform to buy second-hand vehicles, has filed for IPO papers with the capital market regulator SEBI. The company plans to raise Rs 3,000 crores from the initial public offering, according to the DHRP (Draft Red Herring Prospectus).

The issue consists of fresh issue of shares worth Rs 2,000 crore, an Offer for Sale worth Rs 1,000 crore with private placement option of Rs 400 crore.

The equity shares will have a face value of Rs 1 each.

The net proceeds from the fresh issue part of the offer will be used for funding organic growth initiatives (about Rs 1,150 crore), for funding inorganic initiatives (about Rs 400 crore) and the rest will be used for general corporate purposes.

ICICI Securities, Edelweiss, Axis Capital, HSBC and Nomura are the lead book running managers. Kfin Technologies is the registrar for the offer.

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Founded by Sandeep Agarwal in 2014, Droom is a technology and data science company that facilitates automobile buying and selling online through a combination of our asset-light automobile e-commerce platform along with a technology-driven vertically integrated proprietary ecosystem of products and services for the automobile industry.

Per data from the OLA-CRISIL study, the growth rate of the pre-owned car segment is expected to outgrow by as much as 1.5 times more than the new market segment over the next 5 years.
Ira Puranik
first published: Nov 12, 2021 01:24 pm
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