OYO IPO: Want to bid for shares? Understand DRHP filed with SEBI in top 15 points - Decoded

Jumping on the IPO bandwagon and looking to capitalise on a world-beating rally on stock exchanges, hotel aggregator OYO filed preliminary documents for a Rs 8,430 crore initial public offering (IPO). Here are top things to know about OYO IPO from DRHP filed with SEBI:-

1- The offering will consist of a fresh issue of shares of up to Rs 7,000 crore 

2- An offer for sale is of as much as Rs 1,430 crore

3- The hotel-booking startup, whose official name is Oravel Stays Ltd, in the prospectus said it has made losses in each year since incorporation

4 - The pandemic has further "materially and adversely impacted" its business.

5- The firm incurred a loss of Rs 2,364.53 crore in FY19, which widened to Rs 13,122.77 crore in the following year but reduced to Rs 3,943.84 crore in FY21.

6- It had aggregate outstanding borrowings of Rs 4,890.55 crore as of July 31, a part of which will be repaid from proceeds of the issue.

7- While founder Ritesh Agarwal and his holding company had a combined 33.15 per cent stake, Japanese conglomerate SoftBank owned 46.62 per cent of Oyo and AirBnB Inc another 1.36 per cent.

8 -Agarwal held 8.21 per cent and his Cayman-registered holding company RA Hospitality Holdings another 24.94 per cent.

9- As per the DRHP, SoftBank's arm SVF India Holdings (Cayman) Limited, A1 Holdings Inc, China Lodging Holdings (HK), and Global IVY Ventures LLP are among the entities that are selling some of their shares in the IPO.

10- Proceeds from the issue would be used towards funding prepayment or repayment, in part, of certain borrowings availed by its subsidiaries amounting to Rs 2,441 crore, and funding the company's organic and inorganic growth initiatives amounting to Rs 2,900 crore, and balance towards general corporate purpose, it added.

11- With the filing for IPO, OYO Hotels and Homes joins the growing list of startups who have filed for initial share sales recently. 

12 -Founded in 2013 by college dropout Agarwal, OYO has 5,130 employees around the world, and 70.9 per cent of the total employees are based in India.

13 - Global co-ordinators and book running lead managers (GCBRLM) to the offer are Kotak Mahindra Capital Company Limited, JP Morgan India Private Limited and Citigroup Global Markets India Private Limited.

14- The book running lead managers (BRLMs) to the offer are ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited, JM Financial Limited and Deutsche Equities India Private Limited

15 -GCBRLM do both the regulatory and institutional work as well as the marketing of the issue, while the BRLMs are largely engaged in marketing the issue to the investors.

Digital payments startup Paytm and online retailer of beauty products Nykaa are among others that have filed initial documents. Edtech firm Byju's, the country's most valuable startup, is also considering an IPO next year.

OYO IPO follows the spectacular success of Zomato's IPO that ended with a bumper oversubscription on July 16, and was the biggest since March 2020.