Ahead Of IPO, OYO Increases Authorised Share Capital To INR 901 Cr

OYO Likely To File Its DRHP For $1 Bn IPO Next Week

SUMMARY

As per regulatory filing, OYO has increased authorised share capital from INR 1,17,80,010 to INR 9,01,13,59,300

With the increase in authorised share capital, OYO will be able to allot 177 Series F2 CCPS as against 80 Series F2 CCPS

In August, OYO bagged $5 MN from Microsoft at valuation closed to $9.6 Bn

IPO-bound hospitality giant OYO has increased its authorised share capital from its existing INR 1.17 Cr to INR 901 Cr. As per the regulatory filings accessed by Inc42, in an general meeting held on September 1, 2021, OYO’s board has approved of increasing the authorised share capital from INR 1,17,80,010 to INR 9,01,13,59,300.

As per the filings, the Ritesh Aggarwal led OYO had initially planned to allot 80 Series F2 Compulsorily Convertible Cumulative Preference Shares (CCPS) of INR 100 each, but with the increase in authorised share capital, OYO will be looking to allot 177 Series F2 CCPS of INR 100 each, meaning the startup is likely to receive a bigger cheque from investors in days to come.

OYO’s IPO Ambitions

In August, OYO announced that it has shortlisted investment banks JP Morgan, Kotak Mahindra Capital and Citi for an initial public offer ( IPO) for its $1.5 Bn IPO at a valuation of $14 Bn to $16 Bn.

Last month, the hospitality unicorn also raised around $5 Mn from Microsoft Corporation. The startup had allotted 5 equity shares and 80 preference shares to the US tech giant. The fresh capital infusion helped OYO’s valuation to touch $9.6 Bn. The reports of Microsoft buying a stake in the Indian hotel chain emerged earlier this year.

Prior to that, OYO bagged $660 Mn in term B (TLB) funding from global institutional investors. The Gurugram-based company had then said that the offer was overscribed by 1.7 times and the company received commitments of close to $1 Bn institutional investors.

Recently, the hospitality giant had also launched a self sign-up service for hotel owners OYO 360. The new service allows hotel owners to list their properties within 30 minutes as against the typical 15 days process. The hospitality unicorn said that hotel owners with two clicks can onboard their properties on OYO and get growth benefits, partnership benefits, and OYO network benefits.

In the traveling and hospitality sector, Gurugram-based Le Travenues Technology, which operates online ticket aggregator – ixigo, has filed its draft red herring prospectus (DRHP) and is eyeing to raise INR 1,600 Cr through IPO. Aloke Bajpai and Rajnish Kumar led ixigo will offer fresh issue of shares worth INR 750 Cr and an offer-for-sale for INR 850 Cr.

Earlier this year, another online travel portal EaseMyTrip went for INR 510 Cr IPO. At the time of filing the story, EaseMyTrip shares were trading at INR 507.15