BENGALURU: Hotel booking company Oyo on Thursday said reports on its valuation markdown are “patently incorrect”.
As per reports, SoftBank Group has cut down Oyo Hotels' valuation by 20 per cent as the firm prepares for an IPO. It has cut Oyo’s valuation from USD 3.4 billion to USD 2.7 billion.
But Oyo in a statement said speculations about valuation markdown are patently incorrect. “Valuation is an outcome of business performance. As per our latest audited results, we have clocked Rs 7 crore maiden adjusted EBITDA profit in the June quarter, at 41 per cent gross profit margin and a 45% increase in gross booking value per hotel per month as against last financial year,” an Oyo spokesperson said.
“These are improved results and the strong performance trajectory is expected to continue. Hence, there is no rational basis for a markdown,” the spokesperson said. SoftBank is the largest shareholder in Oyo, which has been planning to make a stock market debut.
The hotel booking firm said it has not decided the exact timing for the IPO and the public issue valuation is also speculative. “SEBI has given OYO permission to file updated financials till the September 2022 quarter and will initiate the approval process post the filing of audited numbers,” Oyo said.