Why OYO Postponed It's IPO?

Why OYO IPO Postponed?

Oravel Stays Pvt. Ltd. owns and operates an online hotel booking platform called Oyorooms.com. It offers its services under the brand name Oyo rooms with facilities such as Air-conditioned rooms, spotless linen, breakfast, WIFI, washrooms etc. It allows users to book a room at an affordable price through mobile applications.

The company is focused on reshaping the short-stay accommodation spare since its incorporation in 2012 and has developed a unique two-sided technology platform focused on comprehensively addressing key pain points of their patron on the supply side and their customers on the demand side.

Oyo Rooms had filed a Draft Red Herring Prospectus (DRHP) for Rs. 8430 Cr. IPO in September 2021.

The Company had filed preliminary papers with SEBI. The company had settled for a lower valuation of around USD 7-8 Billion against the USD 11 Billion it initially targeted. The equity shares offered through the DRHP were proposed to be listed on the Stock Exchanges. The company had received approvals from BSE and NSE for the listing of the Equity Shares pursuant to letters.

The Company had proposed to make an IPO comprising of fresh issue of its equity shares of Re.1 each and offer for sale by shareholders existing equity shares of Re 1 each at a premium arrived by the book building process, as may be decided by the Company’s Board of Directors.

According to reports, the company was going to file its addendum to its DRHP to disclose the financial results for 2022.

COVID restrictions disrupted the business model of Oyo. If not for COVID lockdowns due to COVID, Oyo would have been among the most awaited IPOs.

The hospitality & travel tech. firm was looking to launch OYO IPO in September 2022 and had written to stock market regulator SEBI, seeking to update files & restarted the consolidation of financial information.

However, it has now been reported that Oyo has decided to further postpone its filing citing adverse market conditions. Oyo has reportedly postponed its filing due to a market slump which, it felt might affect its valuations.

Oyo is now expected to launch its IPO next year, that is in 2023.

While Oyo’s IPO listing has been postponed, Oyo’s Pre IPO Shares are available at Rs. 100. If you want to maximize your returns and gain the first mover’s advantage by investing in the firm, you can visit our website Planify.