Oyo appoints banks for IPO, set to file draft papers in Oct
BENGALURU: Hospitality unicorn Oyo Hotels & Homes has appointed bankers and lead book managers for its domestic public listing, and is expected to file its draft red herring prospectus (DRHP) by mid-october, three persons aware of the discussion told Mint.
The company has appointed Kotak Mahindra Capital, Citigroup, ICICI Securities, Nomura and Bank of America as lead book managers for the public issue, two persons confirmed to Mint under condition of anonymity.
Oyo is looking to raise $1.2 billion from its public issue, the two people cited above confirmed.
Of the total issue, up to $250 million could be in secondary share sales, the third person said, also requesting anonymity. Early-stage investors of Oyo are likely to make a partial exit through this IPO, he added.
The company is expected to list on the Indian exchanges by early next year.
The news around Oyo’s IPO comes at a time when several startups are making a beeline to list on the public markets. They include beauty marketplace Nykaa, insurtech and lending platform Policybazaar, logistics major Delhivery and Noidabased financial firm Paytm.
Cab aggregator Ola Cabs and e-commerce marketplace Snapdeal are also actively in talks to list on the Indian exchanges in 2022.
“While Sebi (Securities and Exchange Board of India) is warming up to the idea of Indian startups wanting to list on the Indian exchanges, it may execute caution towards some of the new-age platforms wanting to go public... Oyo is a popular and known brand among Indians, which may help garner interest among investors during the listing,” said one of the individuals quoted above.
“Oyo also continues to be plagued by hotel owners complaining about lost deposits, which might not ring well with public market investors. However, considering the bull run phase, there is appetite for IPOS by new-age companies in the current market scenario,” said the individual quoted above.
Oyo did not respond to Mint’s queries until press time on Thursday.
Recently, Mint had reported that in preparation for its public listing, Oyo had expanded its authorized share capital from ₹1.17 crore to ₹901 crore, ahead of a planned public share sale.