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BENGALURU/MUMBAI : Hospitality unicorn Oyo Hotels & Homes has appointed bankers and lead book managers for its domestic public listing, and is expected to file its draft red herring prospectus (DRHP) by mid-October, three persons aware of the discussion told Mint.

The company has appointed Kotak Mahindra Capital, Citigroup, ICICI Securities, Nomura and Bank of America as lead book managers for the public issue, two persons confirmed to Mint under condition of anonymity.

Oyo is looking to raise $1.2 billion from its public issue, the two people cited above confirmed.

Of the total issue, up to $250 million could be in secondary share sales, the third person said, also requesting anonymity. Early-stage investors of Oyo are likely to make a partial exit through this IPO, he added.

The company is expected to list on the Indian exchanges by early next year.

The news around Oyo’s IPO comes at a time when several startups are making a beeline to list on the public markets. They include beauty marketplace Nykaa, insurtech and lending platform PolicyBazaar, logistics major Delhivery and Noida-based financial firm Paytm.

Cab aggregator Ola Cabs and e-commerce marketplace Snapdeal are also actively in talks to list on the Indian exchanges in 2022.

“While Sebi (Securities and Exchange Board of India) is warming up to the idea of Indian startups wanting to list on the Indian exchanges, it may execute caution towards some of the new-age platforms wanting to go public... Oyo is a popular and known brand among Indians, which may help garner interest among investors during the listing," said one of the individuals quoted above.

“Oyo also continues to be plagued by hotel owners complaining about lost deposits, which might not ring well with public market investors. However, considering the bull run phase, there is appetite for IPOs by new-age companies in the current market scenario," said the individual quoted above.

Oyo did not respond to Mint’s queries until press time on Thursday.

Recently, Mint had reported that in preparation for its public listing, Oyo had expanded its authorized share capital from 1.17 crore to 901 crore, ahead of a planned public share sale.

The company counts Japanese conglomerate SoftBank as one of its largest external investors, which owns almost 46% stake in the firm. Other backers of the company include Lightspeed Venture Partners, Airbnb, Grab, Didi Chuxing, among others.

Recently, Oyo also raised debt funding worth $660 million in July from global institutional investors, including Fidelity Investments, via the term B loan route.

Oyo was last valued at $9.6 billion, earlier in August this year, after tech giant Microsoft Corporation invested nearly $5 million (about 37 crore) in the company.

Post the Microsoft deal, Oyo said that it has entered into a multi-year alliance with the tech behemoth to develop new travel technologies enabled by the US company’s Azure cloud infrastructure and artificial intelligence.

The partnership with Microsoft will also focus on improving the digital capabilities of small and medium hotels as well as homestays.

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