OYO plans to cut the size of its IPO by as much as 66% due to technological obstacles

OYO Hotels, a SoftBank-backed hospitality and travel technology company, is aiming to sell approximately two-thirds fewer shares during its stock market debut due to tech challenges, according to a report on Monday. The company filed with the Securities and Exchange Board of India an amendment to its Draft Red Herring Prospectus, announcing an adjusted of ₹63 crores for the first half of FY2023.

OYO plans to cut the size of its IPO by as much as 66% due to technological obstacles

Everything about OYO’s Plan!

In January, Sebi asked OYO to amend and resubmit the draught IPO papers. OYO submitted initial paperwork to Sebi in September 2021 for an IPO worth ₹8,430 crores. The business prepared to accept a lower valuation of $7-8 billion rather than the $11 billion it had previously targeted because of the unstable market conditions at the time, which caused the IPO to be postponed. Oyo said in December that it would be eliminating 600 positions from its business and technology divisions.

2 73 OYO plans to cut the size of its IPO by as much as 66% due to technological obstacles

According to a source cited by Bloomberg, “OYO will announce plans to sell barely a third of the new shares it initially intended, reducing the amount of fresh capital it is projected to collect.” According to OYO CEO Ritesh Agarwal, the company expects its sales for FY23 to exceed ₹5,700 crores, up 19% from the ₹4,780 crores it reported for FY22.

Agarwal stated to the company employees at a town hall on Monday that OYO hopes to achieve an adjusted EBITDA of around ₹800 crores in the upcoming fiscal year. He went on to say that the company’s financial performance has improved thanks to its sustained expansion in India, Indonesia, the United States, and the United Kingdom, as well as relevant optimization and synergies in its European holiday homes sector, during a presentation at the gathering with employees.

3 73 OYO plans to cut the size of its IPO by as much as 66% due to technological obstacles

According to Agarwal, OYO’s primary focus areas for 2023 would be Profit After Tax, sustained growth in EBITDA, achieving positive cash flow in FY24, cost efficiency, increasing contribution margins, and adding storefronts, among other things He claims that the business expects to have more than 1.72 lakh shops by the end of FY23, up from 1.69 lahks at the end of FY22, or an increase of about 2%.

5 17 OYO plans to cut the size of its IPO by as much as 66% due to technological obstacles

OYO now has a cash balance of ₹2,700 crores, according to Agarwal, and the company hopes to need very little of it for ongoing operations. According to him, OYO’s reliance on outside funding has gradually decreased over time as cash flow has improved.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More like this

Spinaroo Commercial IPO: Navigating Your Investment Journey

The Indian initial public offering (IPO) market continues to buzz with excitement as Spinaroo Commercial prepares for...

Identixweb IPO: A Tech Revolution Unfolds on the Stock...

Are you ready to witness a groundbreaking moment in the world of technology and finance? The Identixweb...

Prozeal Green Energy ₹700 Crore IPO: Gujarat’s Renewable Energy...

In a bold move that signals the growing prominence of India's renewable energy sector, Gujarat-based Prozeal Green...

CoreWeave IPO $23 Billion Nasdaq Debut: A Pivotal Moment...

In the high-stakes world of artificial intelligence, CoreWeave Nasdaq debut represents more than just a financial milestone...

Zepto Makes $250 Million Secondary Sale: A Strategic Move...

In the bustling landscape of India’s e-commerce sector, a young startup is making waves with a strategic...

LATEST NEWS

IPL 2025: SRH vs GT – Preview, Prediction, Starting XI and Where To Watch The Match LIVE

Sunrisers Hyderabad are set to take on Gujarat Titans in Match 19 of IPL 2025 at the Rajiv Gandhi International Stadium in Hyderabad on...

IPL 2025: Archer, Sandeep and RR Batters Fire to Hand PBKS First Loss

Yashasvi Jaiswal piling on the runs. Jofra Archer carrying forward the rhythm he rediscovered against Chennai Super Kings. Maheesh Theekshana and Wanindu Hasaranga finding...

ISL 2024-25 Semifinal: FC Goa vs Bengaluru FC – Preview, Prediction and Where To Watch The Match LIVE

FC Goa are set to welcome Bengaluru FC to the Jawaharlal Nehru Stadium in Goa for the second leg of their Indian Super League...

Top 5 Footballers Who Played for Both Manchester United and Manchester City

In this blog post, we’ll explore the fascinating stories of footballers who played for Manchester United and Manchester City. We’ll focus on primary keywords...

Featured