Oyo IPO: India’s hospitality startup company Oyo Hotels and Rooms may submit applications for IPO next week. Reuters has learned from sources that the company plans to issue
$ 1.2 billion i.e. about Rs 8000 crore has to be raised. The source said that this will include an offer for sale (OFS) along with a fresh issue. However, there has been no response from Oyo in this matter.
SoftBank holds 46% stake in Oyo. The company will try to strengthen its business by raising money from the issue. The company has been in constant trouble for the last few months due to the spread of coronavirus infection and lockdown. The company’s health has been badly affected due to frequent layoffs, cost cutting, losses and weakening economy around the world.
The company’s founder and chief executive Ritesh Aggarwal said in July that the company’s business was about to reach the state before the second wave of coronavirus infections.
Last month, Oyo received $5 million in funding from Microsoft Corp., Kotak Mahindra Capital, JP Morgan and Citi are advisors to the company’s issue.
After the tremendous listing of Zomato in July this year, many companies have planned to bring IPO. Berkshire Hathaway Inc-backed Paytm is also going to launch the issue in November this year. At the same time, private equity firm Nykaa is also preparing to bring an IPO.