IPO-bound hospitality unicorn OYO is likely to file its draft red herring prospectus (DRHP) in next 10 days, sources inform Inc42. Filing a DRHP with the market regulator SEBI is an important step before a company can list itself on BSE.
DRHP contains detailed information about the IPO offer, shareholding pattern of the company, its directors remuneration among others.
OYO is likely to raise $1 Bn through IPO and the offer will consist of fresh issue of shares and along with an offer for sale of shares, meaning existing shareholders will sell some shares.
Earlier this month, the hospitality unicorn converted itself into a public company. It has also increased its authorised share capital from its existing INR 1.17 Cr to INR 901 Cr and has even shortlisted investment bankers such as JP Morgan, Kotak Mahindra Capital and Citi to manage its IPO.
Last week, Inc42 had exclusively reported that before its IPO, OYO was issuing 4,333 bonus equity shares to 12 equity shareholders including its founder Ritesh Agarwal, OYO’s holding entity RA Hospitality Holdings, SoftBank, Sequoia Capital and others.
Back then, sources informed Inc42 that issuing bonus shares is part of a capital restructuring exercise after the investment from Microsoft and HT Media. Microsoft had pumped in $5 Mn in OYO for exchange of 5 equity shares and 80 preference shares.
The issuance of equity bonus shares will not impact OYO’s shareholding pattern. At present, Masayoshi Son’s SoftBank holds 46% shares in the company, Agarwal holds 34%, about 7% shares are held by employees and the rest shares are held by other investors, the source told Inc42.
In July, OYO raised $660 Mn in term B (TLB) funding from global institutional investors. The Gurugram-based startup had then said that the offer was oversubscribed by 1.7 times and the company received commitments of close to $1 Bn institutional investors.
Founded by Agarwal in 2013, OYO is backed by marquee investors such as Masayoshi Son’s SoftBank, Airbnb, Lightspeed Venture Partners, Innoven Capital, Hero Enterprises among others.
In the traveling and hospitality space, OYO will now follow the suit of another Gurugram-based startup ixigo, which has filed its DRHP and is heading for an INR 1,600 Cr IPO. Earlier this year, another online travel portal EaseMyTrip went for INR 510 Cr IPO.