Hospitality firm OYO Rooms has filed a draft red herring prospectus (DRHP) with capital market regulator SEBI to raise Rs 8,430 crore by floating an initial public offering (IPO).
Oyo, launched in 2013 by Ritesh Agarwal, is the latest among a clutch of tech-focused companies to tap a booming Indian IPO market, which has seen about 30 firms seeking a market listing this year including food delivery player Zomato, Ant Group-backed Paytm and TPG-backed e-commerce beauty firm Nykaa.
Here are key things to know about this listing:
The initial public offer (IPO) comprises a fresh issue of equity shares aggregating up to Rs 7,000 crore, according to a copy of its draft red herring prospectus dated September 30.
Offer for sale (OFS)
The offer for sale is to the tune of Rs 1,430 crore, the draft red herring prospectus filed with Sebi showed.
JPMorgan, Kotak Mahindra Capital and Citi are among the lead book-running managers for the IPO.
Participants in OFS
Existing shareholders SVF India Holdings, A1 Holdings, China Lodging Holdings and Global Ivy Ventures will offer shares under the OFS portion. Besides, the Softbank Vision Fund, Singapore ride-hailing company Grab, and Global Ivy Ventures will be participating in the OFS.
Importance of this IPO
This IPO comes as travel restrictions are being eased worldwide and the tourism sector sees a rebound, with stuck-at-home people heading out on vacations.
Also, it's a time when startups are hitting the primary market to raise capital. In July, While Zomato and CarTrade have made strong debuts on Dalal Street, Paytm, PolicyBazaar, Nykaa and Mobikwik have filed their papers to float IPOs.