Oyo, a hospitality company, is planning to raise up to USD 1.2 billion (about Rs 8,000 crore) through an IPO and is anticipated to file the draft red herring prospectus with the Securities and Exchange Board of India (SEBI) next week, according to sources.
According to them, Oyo has hired investment banks such as JPMorgan, Citi, and Kotak Mahindra Capital to arrange for Oyo IPO or its public offering. Oyo’s comments could not be gathered at the time of publication.
The hotel firm’s proposed initial public offering (IPO) plan follows the phenomenal success of Zomato‘s IPO, which finished with a massive oversubscription on July 16 and was the largest since March 2020.
According to a regulatory filing, shareholders of Oravel Stays, the parent company of hospitality service Oyo, approved the company’s conversion from a private limited company to a public limited company last week.
Oravel Stays’ board of directors had previously approved an increase in the company’s permitted share capital from Rs 1.17 crore to Rs 901 crore.
Microsoft Corporation has invested about USD 5 million (approximately Rs 37 crore) in Oyo through the issuance of equity shares and obligatory convertible cumulative preference shares on a private placement basis, according to a filing with the Registrar of Companies (RoC) in August.
In July, the business obtained USD 660 million from global institutional investors, including Fidelity Investments, through a term B loan to refinance and simplify its current borrowings.
In March this year, Oyo founder and Group CEO Ritesh Agarwal had said that “Oyo is on a steady path of the resurgence in 2021 and is seeing signs of recovery across India, Europe, and Southeast Asia.
Oyo’s survival through the COVID crisis and our resurgence shows that we are a company with strong fundamentals and high-value potential.”
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