Oyo files DRHP for $1.2 bn IPO, founder, key investors not diluting stake

Travel know-how enterprise, Oravel Stays Limited (OYO), on Friday filed its Draft Pink Herring Prospectus (DRHP) for its initial community offering (IPO) of Rs eight,430 crore ($1.2 billion) with the Securities and Exchange Board of India (SEBI).

Traders which include founder Ritesh Agarwal, Lightspeed Undertaking Partners, Sequoia Money, Star Advantage Expense Limited (Didi), Greenoaks Money, AirBnB, HT Media and Microsoft are not diluting their shareholding, according to documents noticed by Company Regular.

OYO’s initial community offering consists of fairness shares of confront value of Re 1 each of Oravel Stays Limited aggregated up to Rs eight,430 crore (about $1.16 billion).

The supply includes a fresh new issuance of up to Rs seven,000 crore (about $966 million) and an supply for sale aggregating up to Rs 1,430 crore (around $197 million).

The IPO will consist of eighty three for each cent fresh new challenge and 17 for each cent supply for sale.

The supply for sale includes aggregate shares from a modest element of SVF India (Softbank Vision Fund), A1 Holdings Inc (Get), China Lodging, and Worldwide IVY Ventures LLP.

The enterprise and its stakeholders may possibly, in consultation with direct administrators, think about a further challenge of fairness shares for hard cash thing to consider aggregating up to Rs one hundred forty crore (about $193 million), documents say.

The pre-IPO placement, if carried out, will be at a cost to be made a decision by the enterprise and its stakeholders in consultation with the direct administrators and the pre-IPO placement will be carried out prior to the filing of the Pink Herring Prospectus with the Registrar of Organizations.

OYO has proposed to use the net proceeds from the fresh new challenge towards funding prepayment or reimbursement, in element, of certain borrowings availed by certain subsidiaries, funding natural and inorganic expansion initiatives and normal company functions, the documents show.

The world wide co-ordinators and guide running direct administrators to the supply are Kotak Mahindra Money Corporation Limited, JP Morgan India Non-public Limited and Citigroup Worldwide Marketplaces India Non-public Limited. The Reserve Operating Lead Professionals to the supply are ICICI Securities Limited, Nomura Money Advisory and Securities (India) Non-public Limited, JM Money Limited and Deutsche Equities India Non-public Limited.

Founded in 2012, OYO has a lot more than 157,000 storefronts across a lot more than 35 nations that use its system. On the buyer facet, the OYO application has been rated as the most downloaded accommodation application in Asia and third largest in the earth in 2020 according to Sensor Tower.

In excess of the past calendar year, OYO has implemented a selection of steps as a element of its Covid-19 reaction technique, which include accelerated development and adoption of know-how and solutions to decrease running expenses, and repositioning its choices.

The enterprise also streamlined strategic and shared services functions, this kind of as income management, source, human means, authorized and finance, from region teams to regional teams to streamline processes, develop a lot more efficiencies and decrease expenses. As a end result of these steps, its altered gross earnings margin enhanced from 9.seven for each cent in fiscal 2020 to 33.2 for each cent in fiscal 2021 along with around seventy nine for each cent reduction in EBITDA losses from FY20 to FY21.

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