Oyo IPO details: The DRHP, decoded

Mumbai: Oyo Hotels & Homes has filed the preliminary documents for an Rs eight,430-crore initial public giving (IPO), connecting the frenzy of native technology unicorns seeking to list on India’s stock exchanges.

Oyo IPO details: The DRHP, decoded

According to the draft red herring prospectus (DRHP), the Oyo commercialism goes to be a mixture of primary and secondary sedimentary rock sale: Rs seven,000 large integers are going to be raised by supply contemporary stock and therefore the rest via a suggestion available. In an OFS, existing investors sell their stake, partially or fully. the corporate conjointly has the choice to lift Rs one.400 large integer in a very pre-IPO placement.

A worth band for the giving wasn't disclosed within the draft documents.

The filing of the Oyo DRHP marks a dramatic recovery for pandemic-marred travel and cordial reception trade. The startup has refashioned itself, moving aloof from a business model that brought money stress, sour its relationships with building house owners, and invited court battles.

Financial performance: Despite a worldwide pandemic closing down the travel and cordial reception trade, Oyo is moving towards profit. In business complete March 31:

Loss narrowed to Rs three,943 large integers from Rs thirteen,122 large integers a year agone.

Revenue declined by nearly seventieth year-on-year to Rs four,157 crores.

Adjusted margin rose to Rs one,320 large integers from Rs one,280 large integers in FY20.

Adjusted gross margins rose to thirty-third in FY21 from nine.7% in FY20.

The company spent Rs 542 large integer for selling and promotions.

“Our whole selling efforts square measure costly and should not be cost-efficient or prosperous.” Oyo same within the DRHP. “If our competitors pay more and  more on whole selling efforts, we have a tendency to might not be able to maintain and grow traffic to our platform.”