News Update
Federation of Hotel and Restaurant Associations of India says SEBI to discard Oyo’s IPO citing huge Irregularities
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ByStartupStory | May 12, 2022
The Federation of Hotel and Restaurant Associations of India (FHRAI) petitioned the Securities and Exchange Board of India (SEBI) on Wednesday to cancel Oyo’s initial public offering (IPO), citing the hotel rooms aggregator’s significant losses in previous years.
The FHRAI warned that Oyo’s IPO will reportedly wipe off public money while rewarding the company’s founders and top executives.
According to the major hotel industry authority, Oyo has been losing money since its launch in 2013, and its overall turnover has dropped by 69% from Rs 13,413 crore in 2020 to Rs 4,157 crore in 2021.
According to sources, Oyo lost Rs 3943.84 crore in Financial year 20-21, which equates to a loss of almost Rs 76,077 every minute.
“Since its establishment, Oyo has continuously recorded losses. It may have raised funds to become one of India’s best positive start-ups, but that hasn’t accomplished enough to run the company effectively on the ground “FHRAI Vice President Gurbaxish Singh Kohli remarked.
CCI is investigating the firm for anti-competitive actions, in addition to its financial difficulties and losses, according to Kohli.
“According to reports, Oyo has ceased to operate individual hotels and has lowered to nothing more than another online travel agency. Oyo is feared by the hospitality business “he stated.
FHRAI had previously raised concerns about significant inaccuracies and inadequate disclosures in Oyo’s Draft Red Herring Prospectus (DRHP).
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