OYO Files For INR 8,430 Cr IPO

OYO
OYO

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Oyo Hotels & Homes has filed its draft papers with market regulator SEBI (Securities and Exchange Board of India) for an Rs. 8430 Crore IPO. The company will issue fresh shares worth INR 7,000 Cr. Existing shareholders will also offload their shares worth Rs. 1430.

Oyo’s founder Ritesh Agarwal, his holding company RA Hospital Holdings and SoftBank Vision Fund are the three largest shareholders. SoftBank holds 47% while Ritesh and his holding company hold a 33% stake in combined Agarwal does not plan to sell any shares in the OYO IPO, but SoftBank will offload a small stake. Other investors also won’t sell their stakes.

Pandemic hit the hotel and hospitality business. Oyo also suffered big losses. IPO is also coming at a time when travel restrictions are still there and not many people are traveling. The company also said in the IP document that its ability to achieve profitability may be delayed due to the pandemic. The company also noted that it incurred net losses in each year since incorporation.

Oyo was launched back in 2013 by Ritesh Agarwal. Today, Oyo is valued at $9 billion making it the third biggest startup in India. Oyo is also facing a legal tussle with rival Zostel over a deal between the two Indian hospitality startups that fell apart six years ago.

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