OYO IPO
OYO is a global platform that empowers entrepreneurs and small businesses with hotels and by offering full stack technology that boosts revenue and streamlines operations to households. Bringing affordable and trusted accommodation that guests can easily book instantly.
OYO is an innovative, cutting-edge technological platform that supports the sizable yet highly fragmented global hospitality industry. Since 2012, it has concentrated on the short-term lodging market. High-quality stores at enticing prices are what OYO offers its clients. The OYO IPO will have an 8430 crore issue size.
The promoters
Founder Ritesh Agarwal and his holding company RA Hospitality Holdings have 33.16% stake in the company. SoftBank Group Corp., by way of SVF India Holdings, has 46.62% shareholding.
OYO IPO valuation
As the DRHP didn’t specify the number of shares that would be on offer, so the valuation is difficult to determine at this stage. But, according to a previous ET report, the hotels aggregator was aiming for a valuation of $12 billion.
OYO Financial performance
During the Global pandemic, mostly travel and hospitality getting shutdown. But Oyo is moving towards profitability.
From INR 13,413.26 Cr. in FY20 to INR 4,157.38 Cr. in FY21, OYO’s total revenue decreased by over 70%.
Due to pent-up demand, sources said OYO expects to increase its numbers between April and September as the market recovers.
OYO Debt
The net debt of Oravall Stays at the end of the financial year 2020-21 stood at INR 2,848.79 Cr, showed the filings made with the regulator.
IPO proceeds
The money raised through the sale of shares in the Oyo IPO will be used to pay off or repay borrowings taken out by the company’s subsidiaries, fund its plans for organic and inorganic expansion, and for other general business objectives.
IPO managers
The worldwide coordinators and bookrunners for the IPO are Kotak Investment Banking, JPMorgan Chase & Co., and Citigroup Inc. The additional bookrunners are JM Financial Ltd., Nomura Holdings Inc., and ICICI Securities.
