OYO IPO Details– Should you apply?
Oravel Stays Limited or commonly known as OYO issued a DRHP with SEBI in September 2021 for its Initial Public Offering. The Oyo IPO will be issued for a worth of Rs. 8,430 Crore.
The Oyo public offer covers a fresh issue of equity shares up to Rs. 7,000 crores and later an offer for sale of equity shares aggregating up to Rs. 1,430 crores from selling shareholders. Some stakeholders and notable promoters include SVF India Holdings Limited, A1 Holdings Inc. Ritesh Agarwal (CEO) amongst others.
The lead book running managers for the Oyo IPO are JM financial Ltd, ICICI Securities, Deutsche Equities India Pvt Ltd and NOMURA Financial Advisory and Securities.
Oyo IPO Key Details
| IPO Launch Date | To be announced |
| PO Application Closing Date | To be announced |
| Listing date | – |
| Face Value | – |
| Price range | – |
| Minimum order quantity | – |
| (D)RHP | View |
OYO IPO: Company Background
Oyo (Oravel Stays Limited) is an innovative, technology-driven platform in the highly divided worldwide hospitality niche.
Since its incorporation in 2012, its motive is reshaping the short-stay accommodation space by developing a unique dual-purpose technology platform which connects Patrons/hosts with customers.
The OYO business model has helped various unbranded, and underutilized hospitality properties into branded and easily accessible storefronts. The digital enabling has helped them generate higher revenue and provide their customers with high-quality storefronts at competitive prices.
The founder Ritesh Agarwal and his holding company- RA Hospitality Holdings, have a 33.16% stake in the company. Softbank Group also holds a whooping 46.62% of the company stake. Ritesh Agarwal recently let out his denial to sell any shares in the offer for sale, according to the DRHP.
The company valuation in 2015 stood at $9.6 billion. This was post it had raised $5 billion from technology giant-Microsoft. During that time, it was dubbed the third most valuable startup in India. The company is aiming for a valuation of $12 billion in the next years.
As of March 31, 2021, Oyo has the largest footprint (in terms of market accumulation) in India & SEA and the second-largest stake in Europe (in terms of homes storefronts) among short-stay accommodation players as of September 9, 2021. Oyo currently operates with 157,344 storefronts across 35+ countries.
Objectives of the IPO issue:
- Rs.2441.010 crore for repayment or prepayment of debt undertaken by affiliates
- Rs.29,000 for inorganic and organic growth opportunities
OYO IPO Risks
- Oravel Stays has been recording loses ever since its inception and profits might be further delayed due to various factors.
- The company profits are diluted due to its dependence on 3rd party affiliates like travel agencies, travel management companies, travel websites etc.
- The effects of the pandemic may be tough to cover and may still adversely affect business.
- According to the DRHP, the company may face difficulties in expansions and growth strategies and it may not be able to maintain its high growth rates.
- Oravel Stays has an ongoing court case with Zostel. This may disturb the company’s future endeavors.
- The DRHP also mentions unresolved and pending litigation against the founder of OYO and its subsidiaries.
OYO IPO Strengths
- Oyo has the largest footprint in terms of hotel storefronts in India and SEA, second largest footprint in Europe in terms of home storefronts with 157K+ storefronts across 35 countries.
- The Oyo app has 100 million+ downloads as of March 31, 2021. It stands as the third most downloaded travel app globally. (as per Sensor Tower, 2020)
- 3% of their demand in India was from repeat and new organic demand on their D2C channels during Fiscal 2021.
- They have a strong and trustworthy brand with a high growth and large market cap. Unlike most its competitors, OYO offers supplies to their patrons (notable example- the famous Oyo toolkit which is preferred by hotels as well as customers)
- The adjusted Gross Profit Margin improved from 9.7% in Fiscal 2020 to 33.2% in Fiscal 2021.
- There was a ~78.9% reduction in Adjusted EBITDA losses from FY20 to FY 21.
OYO Financial Snapshot
| Financial Year Ended | GBV (₹ Crores) | Adj. Gross Profit (₹ crores) / % GBV | Adj. EBITDA (₹ crores) |
| March 2019 | 7415.18 | 575.41 | -2236.29 |
| March 2020 | 20088.37 | 1277.18 | -8277.27 |
| March 2021 | 6638.89 | 1313.68 | -1744.72 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
| Revenue | 3961.7 | 13,168.2 | 6329.7 |
| EBITDA | 281.7 | 398.8 | 337.9 |
| PAT | 4,102.2 | 11,079.78 | 2,294.30 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
| Total Assets | 8,751.04 | 14,108.9 | 11,742.6 |
| Share Capital | 0.27 | 0.27 | 0.13 |
| Total Borrowings | 3,165.99 | 2,795.87 | 94.99 |
How to apply for the Oyo IPO?
- Login to your Link Intime account and please enter the issue in the“IPO” section.
- Put in the number of lots you wish to apply for. The price for the same will be indicated next to it.
- Next, enter your UPI ID and click on “submit”.
- Your bid will have been received in the exchange and you will get a mandate notification to block funds in your UPI app
- Once you approve the mandate request on your UPI, the funds will be blocked
FAQS
Does OYO have stock?
No, OYO currently doesn’t have a stock listed. But Oyo has an upcoming IPO which will be up for application soon.
What is the Oravel Stays IPO application start date?
The Oyo IPO dates are yet to be announced.
What is the Oyo IPO issue size?
The full issue size of the latest IPO of Oravel Stays Ltd is Rs 8,430 crores. According to the DRHP, out of this, the fresh issue will be around Rs 7,000 crores and the remaining Rs 1,430 crores will be an offer for sale.
What is the share price of the latest Oravel Stays IPO?
The Oyo IPO share price are yet to be finalized and announced.
Where will the Oravel Stays IPO be listed?
The IPO of Oravel Stays Ltd will be listed on both – the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
How to buy IPO of OYO?
Please go through our “how to apply for OYO IPO” segment to get the easy step-wise procedure.
Who is the Oyo Stays IPO Registrar?
The official registar of Oravel Stays is Link InTime India Private Limited.
What is the Oravel Stays IPO lot size and minimum order quantity?
The lot size and minimum order quantity are to be declared.