Oyo Hotels and Homes will soon join the list of startups launching an initial public offering (IPO) in the country.
Internally, the hospitality company has set a timeline of September for filing its IPO prospectus and wants to be a public company before the calendar year ends, people aware of the development said.
Oyo has initiated talks with multiple bankers including JP Morgan, Citi, and Kotak Mahindra Capital to manage its public issue, they said.
“Work has begun and some bankers have been finalized,” a person aware of the matter told ET. “They are aiming to file the draft red herring prospectus (DRHP) by September.”
Another person said, “Directionally, they are moving towards an IPO but many details are yet to be finalized, including the offered size.”
A spokesperson of Oyo declined to comment.
Oyo is seeing a revival in business in markets such as India and Europe as the number of Covid-19 cases has been falling and the vaccination rate improving. Oyo told ET last month that it was seeing stronger recovery in Europe on the back of higher vaccination rates and that India would also reflect the same once more people are vaccinated, at least once.
Currently, 43% of Oyo’s revenue comes from India and Southeast Asia while 28% comes from Europe and the rest from other global markets. The company was forced to cut down its operations in markets like the US and China amid the virus outbreak. In India, it fired a chunk of its workforce as Covid-19 hit its business hard.
Its IPO plans come at a time when the Indian public market seems to be bullish on startup IPOs following Zomato’s public offer.
Paytm, PolicyBazaar, Nykaa, Mobikwik, and CarTrade are in various stages of going public in India after having filed their DRHP over the last few months.
ET had last month reported that Oyo had secured a $660-million 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 Oyo’s TLB, also referred to as Term B Loan.
The hotel aggregator is also in talks with Microsoft for financing.
Source: Economic Times