Oyo Hotels IPO. Oyo Has Files Draft Paper For 1.2 Billion Dollar Initial Public Offering.

OYO Hotels IPO. 

Oyo Has Files Draft Paper For 1.2 Billion Dollar Initial Public Offering. 

Oyo Hotels and Homes, the parent company of the hospitality provider Oyo, has filed draft documents for an initial public offering (IPO) on the Indian stock exchanges to generate $1.2 billion (Rs 8,430 crore)

The business intends to use the net proceeds from the new offering to cover the prepayment or partial repayment of the borrowings taken out by certain subsidiaries. In addition to using the funds for regular corporate objectives, it will use the fund for organic and inorganic growth activities.

Ritesh Agarwal, the company's creator, will not sell any shares in the IPO. He holds around a third of Oyo's stock.

Lightspeed Venture Partners, Sequoia Capital, Star Virtue Investment (Didi), Greenoaks Capital, AirBnB, HT Media, and Microsoft, in addition to Agarwal, are not diluting their stakes.

A tiny portion of SVF India (Softbank), A1 Holdings Inc. (Grab), China Lodging, and Global IVY Ventures LLP are included in the offer for sale.

The initial public offering is expected to take place in January 2022. It is made up of 83% new issue of Rs 7,000 crore and 17% offer for sale (OFS) worth Rs 1,430 crore.

In collaboration with key managers, the company and its stakeholders may contemplate issuing additional equity shares for a cash price of up to Rs 1,400 million ($193 million).

If a pre-IPO placement is made, it will be at a price determined by the firm and its stakeholders in collaboration with the lead managers, and it will be made before the Red Herring Prospectus is filed with the Registrat of Companies (RoC).

Paytm, MobiKwik, and Nykaa are among the internet startups that have filed for an initial public offering in the recent few months. Online food ordering service Zomato, on the other hand, had a highly successful initial public offering (IPO) in July.

The news comes just after Oyo revealed a strategic investment from Microsoft, a worldwide IT giant.

Kotak Mahindra Capital Company, J.P. Morgan India, and Citigroup Global Markets India are the global co-ordinators and book running lead managers for the offer.

ICICI Securities, Nomura Financial Advisory and Securities (India), JM Financial, and Deutsche Equities India are the book running lead managers for the offering.

After recovering from the COVID-19 pandemic, Oyo switched to a revenue-share strategy, as opposed to the previous one, which paid its hotel partners a minimum guarantee.

The company, which was recently valued at $9 billion, is aiming for a $12-14 billion valuation through this IPO.

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