OYO Hotels and Homes, a hospitality firm, is preparing an initial public offering (IPO) this year. The business has reportedly set a September deadline for filing its draught red herring prospectus, intending to go public by the end of the calendar year.
According to a report in The Economic Times, the Ritesh Agarwal-led business is in negotiation with lenders such as JP Morgan, Citi, and Kotak Mahindra Capital to arrange the public offering. Work has begun, according to a source familiar with the situation, and some bankers have been hired. According to another source, numerous specifics, including the magnitude of the offer, have still to be filed. A representative at OYO declined to comment.
With COVID-19 instances dwindling in India and Europe and vaccination rates rising, OYO is experiencing a resurgence in its business. It thinks that similar to Europe, India would show a robust comeback once more people get vaccinated.
The pandemic had a significant impact on the hotel industry. OYO's fortunes also took a turn for the worst. It reduced its activities in markets such as the United States and China and laid off a section of its Indian staff. India and Southeast Asia make for 43% of the company's sales, while Europe and the rest of the world account for 28%.
Nonetheless, the market appears to be eager for startup IPOs, with businesses like Paytm, Nykaa, Cartrade, Policybazaar, and Mobikwik lining up to follow Zomato.
To that aim, Microsoft, the world's largest software firm, is said to be in discussions to invest $9 billion in the company. Microsoft and OYO may announce their partnership shortly. If the agreement goes through, OYO may use Microsoft's cloud services as well.
In order to cover its current loans, OYO also completed a $660 million debt fundraising round from global institutional investors. The funding is thought to have included Fidelity Investments, Varde Partners, and Citadel Capital.
Source: Business Today