According to reports, OYO is seeking to raise up to USD 1.2 billion (about Rs 8,000 crore) through an initial public offering and is expected to file the draft red herring prospectus with Sebi next week. They further stated that OYO has selected investment banks such as JPMorgan, Citi, and Kotak Mahindra Capital to manage its public issues. The hotel firm's proposed initial public offering (IPO) plan follows the stunning success of Zomato's IPO, which finished with a massive oversubscription on July 16 and was the largest since March 2020.
According to a regulatory filing, shareholders of Oravel Stays, the parent company of hospitality provider OYO, approved the company's conversion from a private limited company to a public limited company last week.
Furthermore, the board of directors of Oravel Stays approved an increase in the company's authorised share capital from Rs 1.17 crore to Rs 901 crore.
In an August RoC filing, OYO stated that Microsoft Corporation had invested about USD 5 million (approximately Rs 37 crore) in OYO through the issue of equity shares and compulsory convertible cumulative preference shares on a private placement basis.
Earlier in July, the company borrowed USD 660 million from global institutional investors, including Fidelity Investments, using the term B loan route to refinance and simplify its current borrowings. In this year March OYO founder and Group CEO Ritesh Agarwal said, "Across 2021, OYO is on a steady path to resurgence, with hints of recovery in India, Europe, and Southeast Asia. OYO's survival and revival during the COVID crisis demonstrate that we are a firm with excellent foundations and significant value potential."