New Delhi1 minute ago
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Hospitality chain is preparing to bring the OYO Rooms IPO. For IPO, the company is planning to file its draft red herring prospectus (DRHP) ie draft papers in November. With the issue, the company is eyeing a valuation of 7 to 8 billion dollars, or about 70 thousand crore rupees.
PTI has received this information quoting sources. According to sources, the company will arrive at the board meeting next week with this IPO. Regarding this, the company’s spokesperson says that nothing can be said about the time of the draft of the IPO or any plan related to it. Because only the Board of Directors have to take a decision on this.
Company talking to banking partners
The company spokesperson says that OYO is currently investigating several strategic options to increase the value of its stakeholders’ investment. According to sources, the company’s conversation with major banking partners in the last few weeks has gone ahead and the valuation guidance has also reached 70 thousand crores, which is at a price of about ₹ 70 per share. This is about 25–30 times the company’s operating profit.
IPO draft may be filed by November
According to sources, its IPO draft may be filed by November. For the past few months, the SoftBank Group of the company’s promoter Japan has discussed a lot with Axis Bank, Citi Bank, Goldman Sachs, ICICI Bank, JM Financial and Jefferies regarding the atmosphere of the market and after feedback it is quite confident about its decision.
The company is now finalizing its important strategic information and the board will be contacted next week. Softbank still remains one of Oyo’s largest shareholders.
Draft will reveal the company’s financials
When the OYO draft for the IPO, its current financial condition will be revealed. Apart from this, the company is also working on its new parent brand identity, which will maintain its entire portfolio.
Earlier this year, Oyo founder and CEO Ritesh Aggarwal sought a new name suggestion for his parent entity Oravel Stage Limited on social media platforms. The new identity of the group will be revealed when the new name is selected.
The company planning to bring a separate app for premium hotels
Apart from this, the company is planning to bring a separate app for premium hotels and mid-market for premium company-served hotels, as this segment has shown a boom in the country and abroad.
