OYO IPO Details: ₹8,430 Crore Issue Size, Revenue, Debt and Business Model

OYO IPO: Oravel Stays Limited, the parent company of OYO, filed its Draft Red Herring Prospectus (DRHP) on September 30, 2021, proposing an initial public offering worth up to ₹8,430 crore.

The proposed IPO included a fresh issue of up to ₹7,000 crore and an offer for sale (OFS) of up to ₹1,430 crore by existing shareholders.

The DRHP does not specify the final IPO price band, lot size or opening date. The details below are based on the 2021 draft prospectus and should not be treated as current IPO terms.

OYO IPO: Key Details

Particulars	Details
Company	Oravel Stays Limited
Brand	OYO
IPO type	Fresh issue and OFS
Total issue size	Up to ₹8,430 crore
Fresh issue	Up to ₹7,000 crore
Offer for Sale	Up to ₹1,430 crore
Face value	₹1 per share
Price band	Not specified
Lot size	Not specified
Proposed listing	BSE and NSE
Promoters	Ritesh Agarwal, RA Hospitality Holdings and SVF India Holdings
Registrar	Link Intime India Private Limited
DRHP date	September 30, 2021

About OYO

Founded in 2012, OYO operates a technology-enabled hospitality platform. It connects travellers with hotels, holiday homes and other accommodation providers.

The company helps property owners offer branded stays through its online and offline distribution channels. Its services also include hotel management, operations and accommodation-related solutions.

OYO IPO: Business Model

OYO earns revenue through its hospitality and accommodation services. Its main business activities include:

• Hotel partnerships: Helping independent hotels operate under a branded network.
• Online bookings: Connecting travellers with accommodation providers.
• Property management: Supporting hotel and holiday-home operations.
• Travel services: Offering accommodation-related services and event solutions.

Its performance depends on travel demand, hotel partner relationships, customer experience and operating costs.

OYO IPO: Financial Performance

The DRHP provides consolidated financial information for FY2019, FY2020 and FY2021.

Financial Metric	FY2019	FY2020	FY2021
Revenue from continuing operations	₹6,329.74 crore	₹13,168.15 crore	₹3,961.65 crore
Total income from continuing operations	₹6,518.46 crore	₹13,413.27 crore	₹4,157.39 crore

Revenue from continuing operations declined sharply in FY2021. Investors should also review the company's reported losses, cash flows, borrowings and discontinued operations to understand its overall financial position.

OYO IPO: Use of Proceeds

The company proposed using part of the fresh issue proceeds to repay or prepay borrowings held by certain subsidiaries. The DRHP also outlines funding for growth initiatives and general corporate purposes.

The money raised through the OFS would go to the selling shareholders, not to OYO.

OYO IPO: Key Risks

• Profitability: The company reported losses in its historical financial statements.
• Debt: Borrowings and interest expenses may affect financial performance.
• Travel demand: Lower hotel occupancy and weaker travel demand can affect revenue.
• Competition: OYO competes with hotel chains, booking platforms and other accommodation providers.
• Execution: Maintaining service quality and strong relationships with hotel partners is important to business growth.

OYO IPO: What Investors Should Know

OYO's technology platform and hotel network are central to its business. However, investors should assess profitability, debt, cash flow, business growth and valuation before making an investment decision.

The September 2021 DRHP is a historical document. Check the latest official filings for any updated IPO plans and financial information.

Disclaimer: This article is for informational purposes only and is not investment advice. The IPO details and financial figures are based on Oravel Stays Limited's DRHP dated September 30, 2021.