The Indian multinational OTA- OYO’s will be among the biggest IPOs since Paytm’s. In its preliminary filing, the company said it planned to raise Rs 8,430 crores after preliminary conversations with investors.
In January 2022, more than 500 current and former employees of OYO, bought over 3 crore shares in the company. The total value of these shares can be approximated to about INR 330 crores, as per the last valuation of OYO of $9.6 bn.
The SoftBank Group Corp.-backed startup is speculated to get the appraisal to move on with the offering this week or next after filing prior documents last year. A formal roadshow will begin after regulatory approval and determine final pricing.
Oyo is extending its paid-up share capital base where equity and preference share got a split of 1:10. Furthermore, the equity shareholders have a bonus of 3999 shares and preference shareholders have been given a conversion ratio of 1:4000 for equity shares which changed from 1:1.
It was speculated that the startup has examined to offer a discount of approx 15% on the $10 billion proffered by bankers during early discussions. The valuation Oyo is targeting would be lower than the $12 billion initially reported in local media last year and probably lower than the $10 billion level the startup hit in 2019.