InvestorQ : Can you tell me about the proposed IPO of Droom Technologies and when is it supposed to open?
Tisha Malhotra made post

Can you tell me about the proposed IPO of Droom Technologies and when is it supposed to open?

Answer
image
Aashna Tripathi answered.
2 weeks ago
Follow

Droom Technologies has just filed its DRHP with SEBI to raise a total sum of Rs.3,000 crore through the IPO route. Normally, once the DRHP is filed, the regulator takes between 1-2 months to give its comments. Once the SEBI gives its comments on the DRHP, it is construed to be an approval for the company to go ahead with the IPO, subject to clarifications.

As per the DRHP filed, the IPO of Droom Technologies will comprise of a fresh issue of Rs.2,000 crore and an offer for sale by existing shareholders of Rs.1,000 crore. The company is planning a pre-IPO placement of Rs.400 crore, which if successful, will reduce the size of the IPO accordingly.

The IPO of Droom assumes importance as it is in the same sector as CarTrade which launched its IPO in August as a total OFS. However, the performance has lagged as the stock quotes at a 31% discount to the issue price. This should be an overhang on the stock as it goes for the IPO.

Droom was founded by Sandeep Agarwal in 2014. The OFS of Rs.1,000 crore will be offered by parent company Droom Pte Ltd, Singapore. Out of the fresh issue of Rs.2,000 crore, the company will use Rs.1,100 crore for organic growth and Rs.400 crore for inorganic expansion via mergers and acquisitions.

Droom offers over 250,000 vehicles to buy and sell on its platform. Droom offers benefits like a huge choice of used and new vehicles, best-price based model, agnostic platform, over 1100 inspection points and supported by easy loan and insurance facilities.

0 Views