New Delhi: Hospitality and travel-tech firm OYO is looking to launch its initial public offering after September and has written to stock market regulator Sebi seeking to file updated and restored consolidated financial information.
The company, which had filed preliminary papers with SEBI for raising 8,430 crore, through an initial share sale in October last year, is now poised for a lower valuation of around USD 7-8 billion as against USD 11 billion, according to people aware of the development.
OyoHe said the move to launch the IPO after the September quarter is primarily driven by expectations of an improvement in its financial performance and the current volatile nature of the market.
It is understood that in a letter to SEBI, OYO-run Orawell Stages Ltd. has permitted inclusion of financial statements for the period of six months ending September 30, 2022, September 30, 2021 and September 30, 2020. has asked.
“Valuation in prices in newly listed stocks creates concern among the public. Amidst such sentiments, it would be best to be able to show investors first that the revival of the business is real, that it is strong and much more than that. Bookings are happening and probably, the first sign of a positive bottom line. Hence, Oyo will wait for a quarter,” said a person aware of the company’s plans.
When contacted for comments, Oyo declined to comment.
company’s proposed IPO A new issue of equity shares in the aggregate was comprised of 7,000 crore and an offer for sale 1,430 crores as per its DRHP.
However, it is reported that OYO now only wants to go ahead with the 7,000 crore primary issue, to be removed 1,430 crore offer (OFS) component for sale, and has reached SEBI for approval. OFS allows the promoters of a company to sell their shares to the public through a stock exchange.
OYO’s OFS may have seen its largest investor SoftBank Group selling its around 2 per cent stake and other investors Grab Holdings, Huazhu Hotels and Hero Group’s Sunil Munjal’s family office reducing their stake as well.
Also, when OYO goes to list on the markets, it will settle for a more reasonable valuation of around USD 7-8 billion, considering how the stock markets have changed over the past few months. less than USD 11 billion. A source said.
When the company filed its DRHP with SEBI in October 2021, the market boomed and the IPO was getting oversubscribed with both global and domestic capital at high valuations and the stock market.
However, the landscape has changed since then, with geopolitical unrest, rising inflation and interest rate hike cycles.
In August 2021, when OYO raised USD 5 million from Microsoft, it was valued at USD 9.6 billion.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.