OYO Seeks Sebi For Rs 8,430 Crore IPO, Real Estate News, ET RealEstate
The hotel reservation start-up, whose official name is Oravel Stays Ltd, said in the prospectus that it had suffered losses every year since its incorporation and that the pandemic had further “materially and negatively affected” its businesses. activities.
The company suffered a loss of Rs 2,364.53 crore in FY19, which widened to Rs 13,122.77 crore the following year but was reduced to 3,943.84 Rs crores in fiscal year 21.
He had a total outstanding loans of Rs 4,890.55 crore as of July 31, part of which will be repaid from the proceeds of the issue.
While founder Ritesh Agarwal and his holding company held a combined 33.15% stake, Japanese conglomerate SoftBank held 46.62% of Oyo and AirBnB Inc a further 1.36%.
Agarwal held 8.21% and its Cayman-registered holding company, RA Hospitality Holdings, 24.94%.
According to the DRHP, the branch of SoftBank SVF India Holdings (Cayman) Limited, A1 Holdings Inc, China Lodging Holdings (HK) and Global IVY Ventures LLP are among the entities that sell some of their shares in the IPO.
The proceeds of the issue would be used to finance the early repayment or the repayment, in part, of certain loans contracted by its subsidiaries for an amount of 2,441 crore rupees, and to finance the organic and inorganic growth initiatives of the company. company in the amount of Rs 2,900 crore, with the balance towards the general objective of the company. , he added.
With the IPO filing, OYO Hotels and Homes joins the growing list of startups that have recently applied to sell initial shares. It follows the spectacular success of Zomato’s IPO which ended with an exceptional oversubscription on July 16 and was the largest since March 2020.
Digital payments startup Paytm and online beauty retailer Nykaa are among others who have filed initial documents. The country’s most valued startup, Edtech Byju’s, is also considering an IPO next year.
Founded in 2013 by Agarwal, who dropped out of university, OYO has 5,130 employees worldwide and 70.9% of total employees are based in India.
“As a result of various initiatives that we have taken, our adjusted gross profit margin increased from 9.7% in fiscal year 2020 to 33.2% in fiscal year 2021,” he said. added.
The Global Coordinators and Senior Book Managers (GCBRLM) of the offering are Kotak Mahindra Capital Company Limited, JP Morgan India Private Limited and Citigroup Global Markets India Private Limited.
The main portfolio managers (BRLMs) of the offering are ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited, JM Financial Limited and Deutsche Equities India Private Limited, he added.
The GCBRLM performs both regulatory and institutional work as well as the marketing of the issue, while the BRLMs are largely engaged in the marketing of the issue to investors.
Sweta Patodia, Moody’s Investors Service Analyst, Corporate Finance, said: “OYO’s potential IPO offer will be credit-positive as it will strengthen the company’s liquidity and expand its base of business. ‘investors. pandemic disruptions persist longer than expected. “
A stock market listing will also reduce governance risks regarding corporate transparency and limited public disclosures, she added.