Hotel aggregator Oyo has filed preliminary documents for a Rs 8,430 crore initial public offering (IPO) as it joined the rush of technology unicorns looking to capitalise on a world-beating rally on stock exchanges.
The offering will consist of a fresh issue of shares of up to Rs 7,000 crore and an offer for sale of as much as Rs 1,430 crore, according to the draft red herring prospectus (DRHP) filed with SEBI.
The hotel-booking startup, whose official name is Oravel Stays Ltd, in the prospectus said it has made losses in each year since incorporation and the pandemic has further “materially and adversely impacted” its business.
While founder Ritesh Agarwal and his holding company had a combined 33.15 per cent stake, Japanese conglomerate SoftBank owned 46.62 per cent of Oyo and AirBnB Inc another 1.36 per cent.
Agarwal held 8.21 per cent and his Cayman-registered holding company RA Hospitality Holdings another 24.94 per cent.
As per the DRHP, SoftBank”s arm SVF India Holdings (Cayman) Limited, A1 Holdings Inc, China Lodging Holdings (HK), and Global IVY Ventures LLP are among the entities that are selling some of their shares in the IPO.