Hotel aggregator Oyo has filed preliminary documents for a Rs 8,430 crore initial public offering (IPO) as it joined the rush of technology unicorns looking to capitalise on a world-beating rally on the stock exchanges.
The offering 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, according to the draft prospectus filed with Sebi.
The hotel-booking startup, whose official name is Oravel Stays Ltd, in the prospectus said it has made losses in each year since incorporation and the pandemic has further “materially and adversely impacted” its business.
The firm incurred a loss of Rs 2,364.53 crore in FY19, which widened to Rs 13,122.77 crore in the following year but reduced to Rs 3,943.84 crore in FY21. It had aggregate outstanding borrowings of Rs 4,890.55 crore as of July 31, a part of which will be repaid from proceeds of the issue.
While founder Ritesh Agarwal and his holding company had a combined 33.15 per cent stake, SoftBank owned 46.62 per cent of Oyo and AirBnB Inc 1.36 per cent. Agarwal held 8.21 per cent and his Cayman-registered holding company RA Hospitality Holdings 24.94 per cent.
SoftBank’s arm SVF India Holdings (Cayman), A1 Holdings Inc, China Lodging Holdings (HK), and Global IVY Ventures LLP are among the entities selling some of their shares in the IPO.
