Oyo files draft papers for a $1.2 billion IPO
- ByManjeet Singh | October 1, 2021
As part of its initial public offering (IPO) plans, Oyo Hotels and Homes that owns hospitality firm Oyo has filed draft documents to raise $1.2 billion (Rs 8,430 crore) on the Indian stock market. The IPO will not result in any stake sales by first founder Ritesh Agarwal, Moneycontrol reported. Agarwal owns 34 percent of Oyo.
The net proceeds of the fresh issue are intended to be used to compensate some subsidiaries for borrowings they have taken out. Additionally, the company will use the funds to enhance its organic and inorganic growth initiatives. In addition to Agarwal, Lightspeed Venture Partners, Sequoia Capital, Star Virtue Investment (Didi), Greenoaks Capital, AirBnB, HT Media, and Microsoft are also not diluting their shares. Offering includes aggregate shares from SVF India (Softbank), A1 Holdings Inc. (Grab), China Lodging, and Global IVY Ventures LLP.
The IPO is likely to take place in January 2022. In total, 83 percent of the offer consists of fresh issues valued at Rs 7,000 crore and 17 percent are offered for sale (OFS) valued at Rs 1,430 crore.
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