OYO IPO: Travel tech firm files draft papers with SEBI; Here's how much it plans to raise

Oravel Stays Limited, popularly known as OYO, has filed its IPO papers of Rs 8,430 crore with the SEBI (Security and Exchange Board of India). OYO's decision to enter the capital market comes at a time when several local startups are turning to Indian bourses- BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

According to the draft red herring prospectus (DRHP), OYO IPO consists of equity shares of the face value of Re 1 each of Oravel Stays Limited piled up to Rs 8,430 crore. The global travel technology firm informed that the price for the pre-IPO placement if undertaken, will be decided by the firm and its stakeholders in consultation with Lead Managers. It also informed that pre-IPO placement will be done before the filing of RHP (Red Herring prospectus).

The Initial Public Offering (IPO) will comprise a fresh issue of shares up to Rs 7,000 crore and an Offer For Sale (OFS) of Rs 1,430 crore. The money generated from the IPO will be used to repay or prepay debt, fund the company's growth and towards general corporate purposes.

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

More about OYO

Founded in 2021 by Ritesh Agarwal, OYO is one of the leading companies in the tech-based global hospitality sector. Having a presence across 35 countries, the Gurgaon-headquartered firm has more than 1.57 lakh storefronts that benefit from its platform. 

While OYO has a global footprint, its crore markets comprise India, Malaysia, Indonesia and Europe. These are the most mature markets in terms of 'scale and unit economics.'

The company's investors include SoftBank Group, Greenoaks Capital, Didi Chuxing, Lightspeed India, Hero Enterprise,  Sequoia India, Airbnb and China Lodging Group.