NEW DELHI: Ritesh Agarwal and Soft Bank-owned Oravel Stay Private Ltd (Oyo) has filed draft paper for its Rs 8,400-crore initial public offer (IPO) with the market regulator Securities and Exchange Board of India (Sebi) on Friday, October 1, 2021.
The company, which provides a technology-enabled platform to small hotel owners to reach a larger section of customers, is planning to issue fresh equity shares worth Rs 7,000 crore and raise another Rs 1,430 crore through an Offer for Sale (OFS) issue.
According to the draft paper, OYO may consider a pre-IPO placement for an amount not exceeding Rs 1,400 crore. The company says in the draft paper that a part of the proceeds of the issue – Rs 2,441 crore – would go towards prepayment or repayment of debt availed by its subsidiaries, while Rs 2,900 crore would be used for organic and inorganic growth of the company.
According to the draft paper, Softbank Ventures Funds (SVF) India Holding holds 46.62% in the company, while its founder Ritesh Agarwal and its holding company -- RA Hospitality Holdings (Cayman) – together hold 33.15% in the company.
Investors like SVF India, A1 Holdings Inc, China Lodging Holdings (HK) Limited and Global Ivy Ventures LLP may sell some of their holdings in the company through the public issue. As per the draft paper, the company has so far earned revenue of Rs 3,961 crore and posted a loss of Rs 3,944 crore in 2020-21. In 2019-20, the company posted revenue of Rs 13,168 crore and reported a loss of Rs 13,123 crore. Its total debt stood at Rs 3,166 crore on a consolidated basis as on 31 March 2021.