Hospitality company OYO Rooms is planning to launch an IPO (Initial Public Offerings) soon. The DRHP (Draft Red Hearing Prospectus) is to be filed by September as per the deadline that the company has set for itself to go public before the year ends. Currently, OYO is involved in few conversations with bankers at few companies such as JP Morgan, Kotak Mahindra Capital and CITI to handle its public issue.
A person aware of the development procedures has mentioned that the process has begun and bankers are to be finalized. Another person has also come forward to inform that the necessary details are to be filed and that included the size of the offer.
Pandemic has taken a toll on the business activities of the company and its employees as well. In marketplaces such as the USA and China, the operations of the company were forced to shut down due to the Covid outbreak. Meanwhile, in the Indian market few of its employees had been fired as the company could not bear paying salaries due to the losses faced by the company.
But the company is currently in a reviving stage for its business activities to come together to grow their business again. The business revival can be noticed in countries like India and Europe as the vaccination drives have been on a raise and the cases have been on fall in Europe, soon India is also estimated to grow in the rate of vaccinations. The company’s revenue is mostly generated at 43% from India and Southeast Asia, Europe generates around 28% and the rest 29% is generated across the other global markets.
IT giant company such as Microsoft is on an urge to make a deal with OYO, as to invest at a valuation of $9 million. OYO will be granted the facility of using Microsoft’s cloud services once the deal is locked between the two parties and it is yet to be announced soon.
The market is excited for startup companies like Paytm, Policy Bazar, Mobikwik and Nykaa to be linked up for their company’s initial public offerings following the path of Zomato. Zomato recently has been the first unicorn company in India to file IPO at a valuation of Rs 60,000 crores.