OYO plans IPO after September, may settle for lower valuation
- ByStartupStory | May 24, 2022
Founded by Ritesh Agarwal in 2012 ,OYO Rooms is an Indian multinational hospitality chains of leased and franchised, homes and living spaces is all set to launch its initial public offer after September.
Oravel stays limited which runs OYO is looking to launch its Initial public offer (IPO) and has written to SEBI seeking permission to restate financial statements for the six months period.
The DRHP (draft red herring prospectus), reported that the hospitality and travel tech firm has suffered a loss of Rs 1,744.7Cr in 2021.In the freshly prepared IPO, the company’s equity is aggregating ₹7000 cr and an offer to sell to the tune of ₹1430 cr though it’s now willing to do away with ₹1430 cr offer for sale component and is now asking for Sebi’s approval.
The company’s largest investor Soft Bank group has sold around 2% of its stake along with other investors likeab Holdings, Huazhu Hotels, Hero group who are also diluting their stakes. It’s one of the biggest sell OYO’S OFS, (it is a platform that allows stake holders to sell their stake to the public via stock exchange)would have seen.
The change in DRHP is due to the change in market, earlier during October 2021 the markets were buoyant and IPO’s valuation were getting high and oversubscription was happening but the altered scenario now because of global unrest, inflation has caused the change of plans.
A person aware of company’s plan asserts that “Price swings in a newly listed stock create concern among the public. Amongst such sentiments, it will be best to be able to first show to the investors that the business revival is real, it is strong and is leading to much higher bookings and perhaps, the first sign of a positive bottom line. Hence, OYO will likely wait for a quarter.”
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