Droom Technology IPO - 7 Things to Know About

Like CarTrade, which had listed on the stock exchanges post its IPO about 3 months back, Droom Technology is also a reputed agnostic platform to buy and sells cars and bikes. Droom Technologies has now filed its DRHP with SEBI for its proposed IPO.
 

Here are seven interesting facts to know about Droom Technology IPO

1. Droom Technology is planning an IPO of Rs.3,000 crore comprising of a fresh issue of Rs.2,000 crore and an offer for sale of Rs.1,000 crore.

Droom is a digital start-up that offers an agnostic platform for buyers to leverage content, comparison and commerce.

2. Currently, the promoters, Sandeep Agarwal and Droom Pte Ltd, Singapore jointly hold 100% stake in Droom Technology. Droom will also look at a pre-IPO placement of Rs.400 crore ahead of the IPO, in which case the size of the IPO size would also be reduced proportionately.

Anchor placement will be done closer to the IPO opening. 

3. Founded in the year 2014, Droom counts amongst its key competitors, names like CarTrade, Cars24, CarDekho, Spinny etc. Of these only CarTrade is listed.

However, CarTrade did disappoint post its listing and still quotes at about 30% discount to the issue price. That could be an overhang for Droom Technology.

Check - Droom Files DRHP for Rs.3,000 crore IPO

4. While the promoters, Droom Pte Ltd and Sandeep Agarwal, will participate in the offer for sale of Rs.1,000 crore, the fresh issue funds of Rs.2,000 crore will be deployed towards organic and inorganic initiatives.

Apart from expanding its presence and reach organically, Droom will also look at niche mergers and acquisitions in the space.

5. Droom has already raised funding twice in the past. In the first round, Droom raised $125 million from investors like Lightbox, Beenext, Digital Garage, Integrated Asset Management, Toyota Tsusho Corp etc.

In Jul-21, Droom also raised $200 million from some of the old investors and new investors like 57 stars and Seven Train Ventures.

6. The second hand car market has picked up solid traction in the last few years and a digital market place is the best fit. Most of the major agnostic automobile commerce portals report huge number of page view and  footfalls.

This is likely to assure rapid growth for the coming quarters.

7. The public issue of Droom Technology will be lead managed by ICICI Securities, Axis Capital, Edelweiss Financial, HSBC Securities and Nomura Financial Advisory as the book running lead manages to the issue.

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