Oyo Files For Mega IPO; Rs 9000 Crore Expected To Be Raised! (Can It Beat Paytm IPO?)
Oyo is one of the most well-known startups in India. Founded by Agarwal in 2013, OYO is the first Indian startup to be publicly rated by Moody’s and Fitch, and two of the leading international rating agencies.
According to a draft presented to the country’s market regulator, Oyo plans to raise around 84.3 billion rupees ($1.16 billion) in an IPO.
SoftBank Group Corp (9984.T) which owns a 46% stake has endured months of layoffs, cost cuts and losses since the COVID-19 pandemic outbreak last year according to the last filing with India’s ministry of company affairs.
OYO Plans For An IPO
Oyo intends to issue up to 70 billion rupees worth of new shares, while existing shareholders may sell up to 14.3 billion rupees worth of shares.
Oyo may contemplate issuing shares worth up to 14 billion rupees ($193 million) in a pre-IPO placement, according to the draft prospectus released by ICICI Securities, one of the books running lead managers for the IPO.
OYO’s Total Income
Oyo which has more than 9 million users from all parts of the world had to face layoffs, cost cuts and losses during the global health crisis and its founder and Chief Executive Ritesh Agarwal said that business was likely to return to levels seen before the second wave of COVID-19 infections in India and “grow from there” in July.
Also, Oyo is expected to list on the Indian exchanges by early next year.
As of now, Oyo has endured months of layoffs, cost cuts and losses since the COVID-19 pandemic outbreak and the net loss for the period narrowed to ?4,102 crores from ?11,079 crores last year.
OYO has now a total income that stood at ?4,157 crores, amid pandemic as against ?13,413 crores a year ago.