Oyo files for IPO to raise over ₹8,000 crore. Details here
- Oyo IPO to comprise fresh issue of equity shares aggregating up to ₹7,000 crore and offer for sale (OFS) to the tune of ₹1,430 crore
Hotel-booking startup Oyo Hotels & Homes has filed its draft papers with market regulator Securities and Exchange Board of India (SEBI) on Thursday for an ₹8,430 crore ($1.1 billion) initial public offering (IPO). The initial share sale comprises fresh issue of equity shares aggregating up to ₹7,000 crore and offer for sale to the tune of ₹1,430 crore.
Oyo IPO details:
- The SoftBank Group Corp. and Airbnb Inc.-backed firm plans to raise 70 billion rupees through the sale of new shares, according to the DRHP. The rest will be secondary shares or those sold by existing stockholders.
- The startup was last valued at about $9 billion, according to CB Insights, making it India’s third most valuable startup.
- Founder Ritesh Agarwal, his holding company RA Hospital Holdings and SoftBank Vision Fund -- the three largest shareholders -- are the promoters, according to the prospectus.
- SoftBank held 46% while Agarwal and his holding company had a combined 33% stake in the firm, according to the last filing with India’s ministry of company affairs.
- The proceeds from the issue worth ₹2,441 crore will be used to pay off debt debt owed by its subsidiaries that include Oravel Stays Singapore Pte Ltd, Oravel Hotels LLC and Oyo Hospitality Netherlands BV, Oyo Singapore and OHL.
- Kotak Mahindra Capital, Citigroup, ICICI Securities, Nomura and Bank of America are appointed as lead book managers last month for the public issue.
- The company is expected to list on the Indian exchanges by early next year.
- For fiscal year 2021, its net loss for the period narrowed to ₹4,102 crore from ₹11,079 crore last year. Its total income stood at ₹4,157 crore, amid pandemic as against ₹13,413 crore a year ago.
Agarwal established Oyo in 2013 after dropping out of college. Now 27, he will be worth billions of dollars if Oyo has a successful listing.
In 2019, Agarwal invested $2 billion, mostly borrowed, to triple his stake in the lodgings startup and take his ownership to nearly a third. India, Malaysia, Indonesia and Europe account for more than 90% of the hotels listed on Gurgaon-based Oyo’s platform.
The app has been downloaded 100 million times, according to the filing, making it one of the most-popular travel apps in the world alongside Airbnb and Booking.com. It has more than 9 million users in its loyalty program, generating direct demand from customers.
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