Droom set to launch Rs 3,000cr IPO in next 2 months

NEW DELHI: Auto marketplace unicorn Droom is set to launch its Rs 3,000-crore IPO by offloading an 18% stake in next two months. The IPO comprises fresh issuance of equity shares worth Rs 2,000 crore and an offer for sale (OFS) to the tune of Rs 1,000 crore, according to the draft red herring prospectus (DHRP) filed by the company in November last year.

Promoter Sandeep Aggarwal, along with 200 employees holding employee stock options (ESOPs), are expected to offload less than 1%, which is roughly a third of their allocated OFS, said people briefed on the matter. “Existing investors will be offloading around 5% of the company’s outstanding shares. Aggarwal, however, will not be diluting a major stake until the company reaches a valuation of $5 billion,” said a source.

Aggarwal, former founder of value e-commerce marketplace Shopclues, holds 32% stake in the company, while 9% is owned by employees. Investors own 59%. Shopclues was one of the first startups in India to be valued at over $1 billion.

Gurgaon-headquartered Droom, which raised its last round in July at a valuation of $1.2 billion, counts 57 Stars, Seven Train Ventures, Lightbox and Toyota among its investors. “When we started Droom eight years ago, 1.1 used cars were sold in India for every new car that was being bought. Currently, the number is pegged at 1.5,” Aggarwal told TOI during an interaction.