OYO revives IPO plans as losses narrow, files fresh documents with SEBI
- In October last year, OYO had filed its draft red herring prospectus (DRHP) with SEBI for its IPO
Hospitality and travel-tech firm Oyo on Monday filed addendum to its earlier submitted draft red herring prospectus to Securities and Exchange Board of India (SEBI) as the company filed fresh financial documents to revive plans for its stock-market debut after cost cuts and a recovery in travel helped it reduce losses.
Oyo disclosed its latest financials in an IPO filing addendum on Monday, with the numbers showing narrower losses and a rebound in sales for the year through March 2022 and the following three months.
The company's losses nearly halved to ₹18.9 billion for the year through March 2022. The numbers were restated from previously undisclosed figures and included in the IPO document addendum made available by its bankers.
The company's adjusted gross profit margin improved from 9.7% in fiscal 2020 to 33.2% in fiscal 2021 along with approximately 79% reduction in its EBITDA losses from fiscal 2020 to 2021. EBITDA further narrowed and reported its maiden positive during the first quarter of the current fiscal. Meanwhile, Oyo's revenue from operations rose 21% to ₹4,781.4 crore in financial year 2022 from ₹3,961.6 crore in 2021.
In October last year, Oyo had filed its draft red herring prospectus (DRHP) for its initial public offering (IPO). The company's proposed issue comprised a fresh issue of equity shares aggregating up to ₹7,000 crore and an offer for sale to the tune of ₹1,430 crore, as per its DRHP.
The company had said that the proceeds from the public issues will be utilised for prepayment or repayment, in part, of certain borrowings availed by its subsidiaries, funding organic and inorganic growth initiatives, and general coporate purposes.
Oyo was founded in 2012 by Ritesh Agarwal. The company is now targeting an initial share sale in early 2023 provided that India’s stock market continues to hold up and economic conditions improve, sources told Bloomberg, adding that the startup is now focusing on four main regions: India, Malaysia, Indonesia and Europe, where it manages vacation homes and has cut down operations in markets it previously considered crucial, such as the US and China, where its employees now measure in the single digits.
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First Published:19 Sep 2022, 11:08 AM IST
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