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.
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.”