Hospitality startup Oyo Hotels and Homes eyes $9 billion valuation in IPO
- ByTejika Bajaj | January 18, 2022
The hospitality startup Oyo Hotels and Homes is all geared up to mark its debut in the stock market and is eyeing a valuation of $9 billion against its IPO. Initially, the startup intended to raise its initial public offering at a valuation of $12 million but the financial strain that it has encountered owing to the pandemic has led to its muted response in the same.
The IPO bound startup is likely to receive the green light to proceed with the listing of their stocks with the offering within this week or the following one. The startup had filed its preliminary documents last year. A formal roadshow will begin after regulatory approval and determine final pricing.
Oyo’s IPO would be among the biggest IPO offerings since Paytm and thus has all the investors observing the developments like a hawk. The startup last year has specified that it aims to raise a sum of INR 8,430 crore through the sale of new as well as some secondary shares held by existing investors.
Agarwal founded the Gurgaon-headquartered Oyo, formally known as Oravel Stays Pvt. Ltd., in 2013. He dropped out of college in his teens to travel across the country and got to understand the troubles with India’s lodging infrastructure. He conceived of Oyo as a way to standardise the hotel stay experience, delivering extras like premium linen and high-speed internet service, the brand’s bright red OYO logo ubiquitous across Indian cities.
With its preliminary documents filed in November, Oyo’s IPO would primarily consist of primary shares and a smaller portion of secondary shares. The largest shareholder of the startup, SoftBank plans to sell a meagre portion of its stake in the IPO, whereas the co-founder does not plan to give away his stake. Other investors on board have also refused to sell their part-stake for the IPO.
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