Oyo IPO: Know Everything Before You Invest

Oravel Stays, the company behind the hospitality technology firm OYO, has submitted its Draft Red Herring Prospectus to the stock market regulator, Sebi. They also revealed to PTI that OYO may schedule its initial public offering (IPO) soon.
Unlike the conventional approach, where companies must launch the IPO within a year of receiving Sebi approval or final observation, the pre-filing method allows a firm to introduce an IPO within 18 months from the date of Sebi’s final remarks. This approach also offers the flexibility to alter the size of the primary issue by up to 50% until the stage of the Updated Draft Red Herring Prospectus (UDRHP).

Oyo IPO Product Portfolio
Established as Oravel Stays in 2012 and later renamed OYO Hotels and Homes, the company is one of India’s renowned startups. Its innovative approach to India’s hospitality industry aims to deliver affordable and enhanced experiences for every guest. The concept for a hotel chain was conceived by its founder, Ritesh Agarwal, in 2011, when he recognized the scarcity of high-quality budget hotels across India.
Embracing the idea of standardization, he launched OYO Hotels and Homes (previously known as Oravel Stays). Following its inception, the company attracted global funding from leading venture capital firms. As of 2021, OYO had raised approximately $4.1 billion over 21 funding rounds. The SoftBank Group, Greenoaks Capital, Lightspeed India, and Sequoia Capital are key investors.
In the decade since its establishment, OYO has successfully expanded its operations beyond India to regions such as Japan, South-East Asia, the USA, and Europe. Concurrently, its footprint in India has significantly amplified.

About the IPO
As per the Draft Red Herring Prospectus (DRHP) submitted by OYO Hotels and Homes to SEBI, the proposed public issue is expected to amount to Rs 8,430 crores. This sum includes an offer for sale worth approximately Rs 1,430 crores and a new equity share sale amounting to Rs 7,000 crores. Additional specifics of the public issue, like the price band and market lot, are yet to be disclosed.

The Objectives of Oyo IPO
The funds raised are planned to be used for several purposes. One of them is to prepay or repay the debts incurred by various subsidiaries. Another crucial use of the funds will be to bolster various organic and inorganic growth initiatives. Additionally, a part of the capital will be set aside for meeting general corporate purposes. Lastly, the funds will also be used to facilitate the offer for sale for the benefit of participating stakeholders.

Financial Performance (In Crore)

Important Details of Oyo IPO

Important Dates for Oyo  IPO

Lead Managers
⦁ Kotak Mahindra Capital Company Limited
⦁ ICICI Securities Limited
⦁ Citigroup Global Markets India Private Limited
⦁ JM Financial Limited
⦁ Deutsche Equities India Private Limited
⦁ Nomura Financial Advisory and Securities (India) Private Limited
⦁ J.P. Morgan India Private Limited

How to Apply
Wait for the public issue to open for subscription, then click on this link to apply for the Oyo IPO with Bigul https://ipo.bonanzaonline.com/.

How to Check Allotment Status
The registrar for Oyo IPO is Link Intime India Private Ltd. To check your allotment status, please click on this link https://linkintime.co.in/

FAQs

1. What is the OYO IPO? 
OYO IPO refers to the Initial Public Offering of Oravel Stays Pvt Ltd, which operates the hospitality tech firm OYO. This is where the company goes public by offering its shares to the public for the first time.

2. When is the OYO IPO opening date? 
The dates are yet to be announced.

3. What is the face value of OYO shares? 
The face value of OYO shares is yet to be announced.

4. What is the price band for the OYO IPO?
The price band for the OYO IPO has not been disclosed as of now.

5. How much will the OYO IPO be worth?
According to the Draft Red Herring Prospectus (DRHP), the proposed public issue is expected to amount to Rs 8,430 crores.

6. What is the minimum order quantity for the OYO IPO?
It will be announced only after the company discloses more details about the IPO.

7. How to apply for the OYO IPO?
You can apply for the OYO IPO once it opens for a subscription. This can be done through this link: https://ipo.bonanzaonline.com/

8. How can I check the allotment status for the OYO IPO? 
The allotment status for the OYO IPO can be checked on the registrar’s website. Link Intime India Private Ltd is the registrar for OYO IPO. You can check your allotment status here: https://linkintime.co.in/.

9. On which stock exchanges will the OYO IPO be listed? 
The OYO IPO will be listed on the BSE and the NSE.