New Delhi, October 2: Hospitality major OYO is going public through an initial public offering (IPO). OYO on Friday filed the draft red herring prospectus (DRHP) for its Rs 8,430 crore ($1.2 billion) IPO with the Securities and Exchange Board of India (SEBI). The Gurugram-based travel technology company was valued at $9.6 billion in August when it raised $5 million from Microsoft. Founded in 2013, OYO has 5,130 employees around the world, and 70.9 per cent of the total employees are based in India. Here's all you need to know about OYO IPO. Air India’s New Owner To Be Decided in Next Few Days As Financial Bids for National Carrier Being Scrutinised: Sources.

  • According to OYO's draft red herring prospectus, the company is offering a fresh issue of equity shares worth Rs 7,000 crore and an offer for sale (OFS) of up to Rs 1,430 crore.

  • OYO founder Ritesh Agarwal, his Cayman-registered holding company RA Hospitality Holdings and SoftBank's arm SVF India Holdings (Cayman) Limited

    have been named as the main promoters of the company, whose official name is Oravel Stays Ltd.

  • SVF Holdings owns 46.62 percent.of the company, while Agarwal and his RA Hospitality together own 33.15 per cent .

  • Investors including Agarwal, Lightspeed Venture Partners, Sequoia Capital, Star Virtue Investment (Didi), Greenoaks Capital, AirBnB, HT Media, and Microsoft will not dilute their shareholding.

  • Those selling some of their shares in the OYO IPO are SVF India Holdings (Cayman) Limited, A1 Holdings Inc, China Lodging Holdings (HK), and Global IVY Ventures LLP among others.

  • Global co-ordinators and book running lead managers (GCBRLM) to the offer are Kotak Mahindra Capital Company Limited, JP Morgan India Private Limited and Citigroup Global Markets India Private Limited.

  • The book running lead managers (BRLMs) to the offer are ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited, JM Financial Limited and Deutsche Equities India Private Limited.

OYO IPO: What to Expect

According to a report, OYO is looking for a valuation of $11-12 billion. Through IPO, the company looks to raise funding for payment of debts borrowed by its subsidiaries amounting to Rs 2,441 crore, and for the company's organic and inorganic growth initiatives amounting to Rs 2,900 crore. Its total debt stood at Rs 3,166 crore on a consolidated basis as on 31 March 2021.

"OYO's potential IPO offering will be credit positive as it will strengthen the company's liquidity and broaden its investor base. It will also provide the company a longer runway to withstand weak operational performance, should pandemic-related disruptions persist for longer than expected," Moody's Investors Service Analyst, Corporate Finance, Sweta Patodia, told PTI.

(The above story first appeared on LatestLY on Oct 02, 2021 01:42 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).