Oravel Stays Limited is a leading, new-age technology platform supporting the huge yet extremely fragmented global hospitality sector according to RedSeer. OYO IPO will hit the market in January 2023.
Table of Contents
About OYO
Since their inception in 2012, they’ve been focused on reshaping the short-stay accommodation space, and they’ve developed a unique two-sided technology platform focused on comprehensively addressing key pain points for both their Patrons on the supply side and their Customers (travellers and guests who book accommodations at their Patrons’ storefronts through their platform).
Their unique business model enables their patrons to convert fragmented, unbranded, and underutilised hospitality assets into branded, digitally-enabled storefronts with higher revenue generation potential, while also providing their Customers with a diverse selection of high-quality storefronts at competitive prices.
Mission
Their mission is to enable their global network of customers to book affordable and trusted accommodations through a seamless digital experience on their platform, and to empower entrepreneurs and small and medium businesses that own or operate hotels and homes by providing full-stack technology products and services that aim to increase their revenue and ease their operations.
They have 157,344 shops listed on their network as of March 31, 2021, spanning more than 35 nations. Their Patrons utilise their platform to run all of their mission-critical business processes.
Across their digital apps Co-OYO and OYO OS, their comprehensive, full-stack technology suite combines more than 40 goods and services.
Business Model
Their clients may book rooms directly through their platform’s D2C channels as well as indirectly through third-party OTAs.
According to Sensor Tower, their OYO mobile application was the third most downloaded travel mobile application globally in 2020 and the most popular travel mobile application in Asia, with over 100 million downloads.
According to RedSeer, they had 9.2 million OYO Wizard members in India (including 2.1 million who pay subscription fees for higher membership tiers), making it one of the biggest loyalty programmes run by leading travel or food brands in India, as well as the biggest among online hotel or food brands in India, as of March 31, 2021.
OYO IPO
Oravel Stays Limited , headquartered in Ahmedabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 8,430 crores on 30 September 2021.
The offer includes 7,000 crores value fresh equity shares and there is an offer for sale (OFS) of INR 1,430 crores by the promoters mentioned in the DRHP. They are also looking for pre-IPO placement of 1,400 crores.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 8,751.05 | 14,108.98 | 11,742.61 | ||
| Total Revenue | 4,157.39 | 13,413.27 | 6,518.46 | ||
| Profit After Tax | (3,943.84) | (13,122.78) | (2,364.53) | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | (5.61) | (5.61) | 3 |
| Financial Year 2020 | (20.43) | (20.43) | 2 |
| Financial Year 2019 | (3.85) | (3.85) | 1 |
| Weighted Average | (10.26) | (10.26) |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The following are some of the qualitative variables that go into determining the Offer Price:
- In Core Growth Markets, they have a scalable footprint and are the market leader.
- Their Patrons and Customers benefit from a full-stack technological platform with a great value proposition.
- High levels of interaction with their patron and customer base.
- Strong network effects produce a virtuous flywheel.
- Consumer brand that is strong and well-known.
- Strong unit economics and inherent financial strength.
- A strong management team with a wealth of expertise.
OYO IPO Peer Comparison
There are no publicly traded businesses in India that operate in a similar industry to theirs. As a result, providing an industry comparison in respect to their Organization is not feasible.
OYO IPO Details
| IPO Opening Date | December 2021 |
| IPO Closing Date | December 2021 |
| Issue Type | Book Building |
| Face Value | 1 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Order Quantity | – |
| Listing At | BSE, NSE |
| Issue Size | 8,430 Crore |
| Fresh Issue | 7,000 Crore |
| Offer for Sale | 1,430 Crore |
OYO IPO Date
OYO IPO opening date is December 2021, and the closing date is December 2021. The OYO IPO issue may list in December 2021.
| IPO Opening Date | December 2021 |
| IPO Closing Date | December 2021 |
| Basis of Allotment Date | December 2021 |
| Initiation of Refunds | December 2021 |
| Credit of Shares to Demat Account | December 2021 |
| IPO Listing Date | December 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 10 | Minimum level of 1 lot, based on availability, for every shareholder. |
OYO IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of OYO IPO.
OYO IPO GMP
OYO IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 |
Check Out the GMP of all Other IPOs
OYO IPO Review
OYO IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of OYO IPO is good or bad.
OYO IPO Risk
- The impact of the COVID-19 pandemic on their company, operations, and financial performance is unknown and cannot be forecast.
- Since their inception, they have had net losses in every year, and their potential to attain profitability may be delayed.
- They may not be able to maintain their current growth rates, and they may have difficulty carrying out their development plans and implementing their growth strategy.
- Any negative outcome in legal actions involving Zostel might have a substantial and negative impact on their business.
- Competition laws in several jurisdictions may apply to their company and activities.
- There are many lawsuit pending against their company, subsidiaries, directors, and promoter 1.
Other Threats
- They are exposed to hazards that are common in the travel business.
- Their business might be substantially and negatively damaged if they do not effectively secure our intellectual property and data.
- Failure to properly manage cash received from Customers, particularly those who prepay for their reservations, might have a substantial and negative impact on their business.
- Their debt levels may have a negative impact on their financial flexibility and competitiveness.
- Their debt commitments impose limits on their company and subject them to risks that might have a substantial and negative impact on their operations.
- Changes in foreign currency rates have an impact on their financial results.
Brand
In the increasingly fragmented short-stay lodging value chain, we are in the midst of supply and demand. They profit greatly from the flywheel effect of their platform’s interplay between supply and demand, which is backed up by strong local network effects and operating leverage.
Their platform gives them many touchpoints into their Patrons’ businesses and their Customers’ lives, allowing them to build a compelling value proposition for both their Patrons and Customers and laying the groundwork for their powerful consumer brand.
In a Kantar research for 2020, OYO was named the most valuable Travel & Hospitality brand in India, as well as the 30th most valuable brand overall in India.
Market
While they have a global presence, they concentrate their activities on India, Indonesia, Malaysia, and Europe, which are the most developed in terms of retail size and unit economics.
In all areas, their shops are mostly hotels and vacation houses in Europe. They also provide a listing-only option, in which Patrons may list their shops on their network for a monthly charge.
Their asset-light, technology-driven business strategy has allowed them to expand internationally and given them a significant competitive edge in the short-stay lodging industry.
They gain from increased engagement and cheaper acquisition expenses as their platform expands.
Business Approach
Their comprehensive, full-stack technology suite, which empowers all mission-critical areas of their operations, is their value proposition to their hotel and residential business Patrons.
In exchange, their Patrons grant them distribution rights and substantial price control over their storefront inventory, allowing them to optimise their income generating potential through their dynamic pricing algorithms.
They distribute their Patrons’ hotel and home storefront inventory via direct D2C channels on their platform as well as indirect channels through 3rd party OTAs, and they often get a revenue share of 20% to 35% of GBV, resulting in great alignment between us and their Patrons.
OYO IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
OYO IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| December 2021 | 1 | |||||
| December 2021 | 2 | |||||
| December 2021 | 3 |
Management
They are managed by a management team with excellent academic qualifications and extensive expertise in a variety of sectors, including global technology companies, consumer brands, and professional services companies.
They have a good track record of keeping important employees, the majority of whom have been with us since the beginning. Their management team possesses a unique blend of abilities, characteristics, behaviours, and drive.
They hold a variety of academic credentials in fields such as engineering and social sciences from some of the best institutions in the world, including the Indian Institutes of Technology (IITs) and leading Indian and international business schools, and they hail from a variety of cultural backgrounds, including India and the United States.
Promoters
- Ritesh Agarwal
- RA Hospitality Holdings
- SVF India Holdings
Promoter’s Holding
| Pre Issue Share Holding | 79.77% |
| Post Issue Share Holding |
OYO IPO Prospectus
Contact Details
Oravel Stays Limited
Ground Floor-001, Mauryansh Elanza,
Shyamal Cross Road, Nr. Parekh Hospital,
Satelite, Ahmedabad 380015, Gujarat, India;
Tel: +91 079-41005020
E-mail: [email protected]
Website: www.oyorooms.com
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India
Tel: +91 22 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- Kotak Mahindra Capital Company Limited
- J.P. Morgan India Private Limited
- Citigroup Global Markets India Private Limited
- ICICI Securities Limited
- Nomura Financial Advisory and Securities (India) Private Limited
- JM Financial Limited
- Deutsche Equities India Private Limited
We hope we are able to answer all your questions about OYO IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
OYO IPO Opening Date?
OYO IPO will open in December 2021.
OYO IPO Listing Date?
OYO IPO will list in December 2021.
OYO IPO GMP Today?
OYO IPO Grey Market Premium is INR 0 .
OYO IPO Allotment Date?
OYO IPO basis of allotment will be in December 2021.
Lot size for OYO IPO?
Lot size for OYO IPO is 0.
