hospitality unicorn oyo hotel and home It has appointed bankers and lead book managers for its domestic public listing, and is expected to file a draft red herring prospectus (DRHP) by mid-October, three people familiar with the discussions said. Mint.
The company has appointed Kotak Mahindra Capital, Citigroup, ICICI Securities, Nomura and Bank of America as lead book managers for the public issue. Mint under condition of anonymity.
Oyo is trying to raise $1.2 billion from its public offering, the two people mentioned above have confirmed.
Of the total issue, up to $250 million could be in secondary share sales, said the third person requesting anonymity. He said early stage investors of OYO may partially exit from this IPO.
The company is expected to be listed on Indian exchanges early next year.
The news about OYO’s IPO comes at a time when several startups are ready to list in the public markets. These 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 Indian exchanges in 2022.
“While SEBI (Securities and Exchange Board of India) is heating up the idea of Indian startups getting listed on Indian exchanges, it may caution some new-age platforms that want to go public… Oyo is one of the Indians. popular and well-known brands amongst others, which may help in increasing the interest among investors during listing,” said one of the persons cited above.
“OYO is also plagued by complaints of hotel owners losing deposits, which may not go down well with public market investors. However, given the bull run phase, there is appetite for IPOs by new age companies in the current market scenario,” said the person quoted above.
Oyo did not reply MintQuestions until press time on Thursday.
recently, Mint had reported that in preparation for its public listing, OYO had expanded its authorized share capital. ₹1.17 Cr to ₹901 crore, before a planned public share sale.
The company counts Japanese conglomerate SoftBank as one of its largest outside investors, which holds about 46% stake in the firm. Other backers of the company include Lightspeed Venture Partners, Airbnb, Grab, Didi Chuxing, among others.
Recently, OYO also raised $660 million in debt funding from global institutional investors in July, including Fidelity Investments, through the Term B loan route.
Oyo was valued at $9.6 billion in August this year, after an investment of about $5 million (approximately) by tech giant Microsoft Corporation. ₹37 crore) in the company.
Following the Microsoft deal, Oyo said it has entered into a multi-year alliance with the tech giant 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.
tarush.b@livemint.com
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