OYO To Reduce The IPO Size By Two Third Due To Declined Tech Valuations

In 2021, all the companies that went public raised more than Rs 1.2 crores collectively, making their listing successful. In the last two decades, 2021 has been considered the best year for the companies that went public. The successive year, 2022, disappointed the companies and investors as none of the companies performed well in the IPO and bagged just Rs 57,000 cores. The poor performance of the freshly launched startups is discouraging the investors and companies who are planning for an IPO. In the list of upcoming IPOs, OYO is positioned as number 1. The SoftBank-backed Indian hotel aggregator OYO Hotels and Homes Pvt Ltd has cut down its shares for the initial public offering. Let’s discuss why the popular hotel company has reduced its IPO size by two-thirds and what it offers.

Financial Details Of OYO Unlisted Shares

The below-mentioned table depicts the financial figures of OYO in a detailed manner.

Particulars (in Cr)Q1FY23 2022202120202019
Revenue145947814157134136518
Other Income45123195245188
Total Income150449044352136586706
Operating Expenses8532873277297375372
Gross Margins43.28%41.42%36.31%28.71%19.89%
Employee Benefit Expense5411861174247651489
Other Expenses3131205147048271336
EBITDA-203-1035-1632-5671-1491
OPM-13.91%-21.65%-39.26%-42.28%-22.88%
Depreciation652983912728498
Finance Cost136743560741111
PBT-404-2171-4034-11121-2294
PAT-413-1939-4102-11079-2294
No. of shares605605601601601
EPS-0.68-3.20-6.83-18.43-3.82

The OYO’s CEO, Ritesh Agarwal, revealed that the company is about to end FY 23 with a revenue of Rs 5,700 crores which earlier was Rs 4,780 crores in FY22. Moreover, the company reported its first positive quarter, at an EBITDA of Rs 7.26 crores in the first quarter of FY23. The company aims for an EBITDA of nearly Rs 800 crores in FY24. The impressive finances of the company make it worth investing your money and generating high returns on the investment.

Why OYO Plans To Reduce Its IPO Size?

In 2021, OYO planned to bring its IPO worth Rs 8430 crore, and the company has already shared the draft red herring prospectus (DRHP) with SEBI. But, amid the news of flop IPOs of multiple companies, OYO has planned to cut down its initial public offering by two third. The Indian hotel aggregator received SEBI’s nod for the IPO in January 2022; however, due to the weak market conditions and volatility, the valuations of tech-listed startups significantly decreased, and OYO had to postpone its IPO. Besides OYO, several Indian tech startups, including PharmEasy, Droom, MobiKwik, and boAt, have already postponed their initial public offering due to the global economic shutdown. OYO has positioned itself in a safe spot, leading the hotel and hospitality sector, and it is consistently growing in terms of revenue.

Is It A Wise Decision To Buy OYO Unlisted Shares?

Definitely, investing in the OYO unlisted shares is an excellent choice because the company is rapidly hitting new highs in terms of revenue. Moreover, the unlisted shares of the company are constantly surging. Furthermore, the reduced size of the OYO IPO is expected further to increase the demand and prices of the shares. In the last few years, a hike has been observed in its unlisted share prices before the company gets listed. Thus,  it is a fantastic opportunity for investors to buy OYO unlisted shares; as the company plans to go public, the share prices will definitely surge.

But how can you invest in the OYO unlisted shares? You can connect with Stockify, the best online broking platform in India, helping investors to sell or buy unlisted shares of top pre-IPO companies like OYO, Hexaware Technologies Ltd., Pharmeasy, Tata Technologies Limited, and Reliance Retail Ventures Limited. The stock trading experts will guide you throughout the investment process and provide you with all the necessary financial details like EBITDA, EPS report, revenue growth, and profit and loss statement. Connect with the expert brokers of Stockify to start your investment journey.

FAQs

Q1 – How can I check the OYO stock price in India?

Ans – You can instantly check the updated stock prices of OYO unlisted shares using Stockify. Our in-house team of experts continuously tracks and updates the unlisted share prices on the website based on market fluctuations.

Q2 – Does SEBI regulate OYO unlisted shares?

Ans – Securities & Exchange Board of India doesn’t directly regulate the OYO unlisted shares. However, SEBI’s rules and regulations, like the DP charge for every transaction, lock-in period, stamp duty, etc., apply to the unlisted share market.

Q3 – How can I sell or buy OYO unlisted shares in India?

Ans – You can connect with the expert brokers at Stockify to sell or buy OYO unlisted shares in India without any hassle. Our in-house team of trading professionals will provide you with relevant financial data for an easy and safe trading experience.

Q4 – What is the minimum ticket size for investing in OYO unlisted shares?

Ans – Due to the massive response to the unlisted share market, the minimum ticket size for investment has significantly dropped. It was earlier 5-10 Lakhs earlier, but now you can even invest 30-50 K in unlisted shares.

Q5 – Why should I use Stockify to buy OYO unlisted shares?

Ans – Stockify is a trusted online broking platform in India, helping potential investors buy or sell unlisted shares of the top pre-IPO companies. You can connect with our experts to start your investment journey safely and efficiently.

Table of Contents

OYO Hotels and Homes Pvt Ltd has cut down its shares for the initial public offering. Click here to know the reasons for the delay and reducing IPO size.

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