Oyo aims for an IPO in India in 2021

0
Oyo Hotels and Homes will soon join the list of startups launching an initial public offering (IPO) in the country.

Internally, the hotel company has set a September deadline for filing its IPO prospectus and wants to become a public company before the end of the calendar year, people familiar with the development of the market said. situation.

Oyo has entered into talks with several bankers including JP Morgan, Citi and Kotak Mahindra Capital to manage its public offering, they said.

“Work has started and some bankers have been finalized,” a person familiar with the matter told ET. “They aim to file the draft red herring prospectus (DRHP) by September.”

Another person said: “Directly they are heading for an IPO, but there are many details yet to be finalized, including the size of the offering.”

A spokesperson for Oyo declined to comment.

ALSO READ THE TECH NEWSLETTER OF THE DAY

In Today’s Top 5: Amazon India’s Biggest Seller Shuts Down From Next May, UpGrad Joins Unicorn Starter Club, and Paytm is looking to expand ESOP pool.

Read now



Oyo is seeing business recovery in markets such as India and Europe as the number of Covid-19 cases has declined and the vaccination rate improves. Oyo told ET last month that he is seeing a stronger recovery in Europe thanks to higher vaccination rates and that India will also reflect the same once more people are vaccinated, at least once. .

Currently, 43% of Oyo’s revenue comes from India and Southeast Asia, 28% from Europe and the rest from other global markets. The company has been forced to scale back operations in markets like the United States and China amid the virus outbreak. In India, he laid off part of his workforce as Covid-19 hit his business hard.

Its IPO plans come at a time when the Indian public market appears to be bullish on startup IPOs following Zomato’s public offering.

Paytm, PolicyBazaar, Nykaa, Mobikwik and CarTrade are in various stages of their IPO in India after filing their DRHP in recent months.

ET announced last month that Oyo had secured $ 660 million in debt financing from global institutional investors to service its existing loans. Wall Street investors like Fidelity, Citadel Capital Management and Varde Partners have subscribed to the Oyo TLB, also known as the B term loan.

The hotel aggregator is also in talks with Microsoft for funding.


Source link

Leave A Reply

Your email address will not be published.