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Oyo IPO Gets In-Principle Nod from BSE, NSE, Aims $9-Billion Valuation

By: Business Desk

News18.com

Last Updated: January 25, 2022, 16:36 IST

This deal could take OYO's valuation to $9 billion (around Rs 67,000 crore)

This deal could take OYO's valuation to $9 billion (around Rs 67,000 crore)

The initial public offering, or IPO, of Oyo will consist of a fresh issue of shares of up to Rs 7,000 crore and an offer-for-sale of as much as Rs 1,430 crore

OYO IPO Gets Approval: Travel-tech firm OYO though its parent company Oravel Stays Limited has received an n-principle approval from the Bombay Stock Exchange, or BSE, and the National Stock Exchange, or NSE, to float its initial public offering. The Oyo IPO plans to raise Rs 8,430 crore though the sale of its shares which will be put up for investors, later this month. According to reports, this approval to list on the is subject to enough disclosures to be made in the offer document by Oyo. The company is set to file a revised draft prospectus with Securities and Exchange Board of India (SEBI) as it moves ahead.

The initial public offering, or IPO, of Oyo will consist of a fresh issue of shares of up to Rs 7,000 crore and an offer-for-sale of as much as Rs 1,430 crore. If everything goes as planned, the Oyo IPO can be expected soon.

As per documents reviewed by news agency PTI, the company recently received the go-ahead for listing from the National Stock Exchange and BSE. Bourses typically provides such go ahead at advanced stages of the approval process thus signaling that regulatory path is close to getting cleared for the company to approach for its listing.

The company had filed its Draft Red Herring Prospectus (DRHP) with Securities & Exchange Board of India (SEBI) in September last year and has been in the process of responding to the questions and clarifications sought by the regulators, sources told PTI.

The SoftBank-backed startup’s move, as per a report by Moneycontrol, to file a revised Draft Red Herring Prospectus (DHRP) comes amid a crash in the stock markets, both globally and in India. On Monday, food delivery chain Zomato, e-commerce platform Nykaa and PB Fintech had all seen a sharp dip in their share prices amid a bloodbath at the Dalal Street. It is to be noted that all these companies had floated their IPOs last year and had bumper listings.

Oyo had filed for its draft papers with market regulator Securities and Exchange Board of India (SEBI) for its IPO in September last year. As per a report by the Economic Times, the SEBI observations regarding the Oyo IPO are in its final stages and the last round of observations will be done within 10 days.

As per a Bloomberg report, the company is eyeing $9 billion in valuation post-IPO after preliminary conversations with potential investors. As per an ET report last month, companies like Qatar Insurance Company (QIC) and a few high net worth individuals and family offices had bought stakes at Oyo in November and December last year.

In 2021, Oyo also received a $5 million investment from Microsoft Corp. Kotak Mahindra Capital, JP Morgan and Citi are the bankers advising Oyo on the IPO, a source told the media.

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first published:January 25, 2022, 16:17 IST
last updated:January 25, 2022, 16:36 IST