OYO Hotel Valuation: If you are waiting for the IPO of Oyo Hotels. Then you must read this news. A bad news is coming out for Oyo Hotels. Japanese investment firm SoftBank Group Corp has cut the valuation of Oyo Hotels by 20 per cent. SoftBank has slashed the valuation of OYO in its books at a time when it is preparing to launch its initial public offering (IPO) in the Indian stock market.
These banks are the biggest investors
According to the report, SoftBank is the largest investor in hotel booking firm OYO. It reduced the estimated value of Oyo to $2.7 billion in the June quarter, up from $3.4 billion earlier. The valuation of OYO was $10 billion during a funding round in 2019. Since then it has been witnessing a steady decline.
Documents sent to SEBI
Let us tell you that OYO’s parent company is Oravel Stays Ltd. Orwell Stage had earlier this week filed fresh documents with market regulator SEBI to bring the IPO. The firm has updated the results for the first quarter of FY23 in the new draft Red Herring Prospectus (DRHP) submitted to SEBI.
Planned to bring IPO several times
OYO’s founder Ritesh Agarwal has been planning to bring the company’s IPO for a long time. OYO had also submitted draft papers with SEBI in October last year to bring an IPO worth Rs 8,430 crore. However, the company had to face controversies due to one of its past transactions, as well as questions were raised on its valuation.
Considering short IPO
According to sources, there are reports that OYO is discussing to reduce the size of its IPO. The company had earlier kept its valuation around US$ 11 billion, but later agreed to IPO at a lower valuation of around US$ 7-8 billion. It is to be known that due to Corona Pandemic, OYO’s business was affected a lot, due to which it has to face a lot of problems in recovering.
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