Reasons For OYO's Major Management Shuffle Ahead IPO

OYO, the hospitality unicorn of India, shuffles its management ahead of its IPO. The major headline amid this news is about the senior management in which Abhinav Sinha, Global COO, is expected to take on the Chief Products and Technical officer role. The decision of management shuffle comes when OYO is planning to bring its IPO. According to sources, Abhinav will assume the position from the current CTO, Ankit Mathuria, who is expected to leave the company in June.

Since OYO has to refile its Draught Red Herring Prospectus(DRHP) with the Securities Exchange Board Of India (SEBI), the decision of the management shuffle comes as unexpected. Continue reading this post to know the reasons behind this OYO's management shuffle ahead of its IPO.

Significant Changes In OYO's Senior Management

On December 30, 2022, SEBI rejected OYO's IPO draft papers and advised to refile DRHP with updates and revisions. There are specific updates; SEBI suggests OYO include risk factors, KPIs, basics for the offer, and outstanding litigations. Before the projected IPO, the hospitality unicorns underwent major management changes. Here are the significant changes in OYO's senior management:

• Abhinav Sinha, the current Global COO of OYO, will take up the integrated role of Chief Technical and Product Officer.
• Anuj Tejpal, Chief Business Development Officer, has been given the Global Chief Merchant Officer role. He will lead India's merchant teams and devise new strategies for OYO Hotels and Rooms.
• Abhishek Gupta, Chief Financial Officer, has been tasked with working with OYO's largest institutional investors.
• Gautam Swaroop, OYO Global CEO, will now manage allied businesses such as Weddingz.
• Sheerang Godbole, currently serving as Chief Service Officer in OYO, has been given an additional role in OYO's data science division.
• Maninder Gulati, Chief Strategy Officer, has been given the mentorship role to work with OYO leadership and devise strategies for OYO's upcoming projects.

Why OYO Shuffle Its Management Ahead of IPO?

The OYO's senior management shuffles before OYO's planning to refile DRHP with SEBI ahead of its planning to bring IPO later in 2023. However, there has yet to be a confirmation from the company's side about the date the IPO will be disclosed. The biggest question is why OYO decided to shuffle its management ahead of the IPO. Well, there are various reasons behind it which we will discuss below:

Revamp The Leadership

The decision of OYO to shuffle the senior management is its idea to revamp the leadership role in the company. Ahead of the IPO, the role of top executives is changed or gives them a new responsibility. This decision depicts that OYO is trying to prepare a new strategy for future business projects by strengthening its leadership role.

Better Management of Performance Metrics

Last time, SEBI disapproved of OYO's DRHP and suggested revisions and refiling. In the IPO draft submitted by OYO, there needed to be KPIs and financial data. The senior management shuffles could result from OYO's goal of managing and tracking the performance metrics. That is why CFO Abhishek Gupta has been tasked with working with institutional investors.

Planning For Future Projects

OYO has also been planning on its future projects, one of which is the "Super OYO Initiative," for which Shreerang Godbole was selected to work with the OYO data science division. The idea behind giving an additional role to the senior executives clearly shows OYO's intention to streamline future business operations.

How Does It Affect OYO Unlisted Share Price?

As there is confirmation from OYO's side about the exact date of its upcoming IPO, it is also common to ask if there is any impact of OYO management shuffle on its unlisted shares. OYO unlisted shares are available for trading in the Pre-IPO market for retail and institutional investors. The price or performance of OYO shares largely depends on the company's current market position, financials, and other metrics.

The decision of OYO's management shuffle doesn't impact the OYO room share price to a large extent. However, it is vital to check the other key metrics like EBITDA ratio, operating revenue, PAT, debt per equity ratio, and more that impact the OYO share price.

Since the company is in the planning phase of IPO, there is also fluctuation in the unlisted share price of OYO. It is also considered best to invest in highly profitable unlisted companies in India to make profitable returns. The company still needs to disclose the estimated OYO IPO share price to investors. However, anyone can check the OYO unlisted shares price by using an online platform like Stockify.

Why Investing In OYO Unlisted Shares Is Beneficial?

Investing in unlisted shares of the Pre-IPO companies is considered the best option. Top financial experts believe unlisted shares are a great way to diversify investment portfolios.

OYO unlisted shares constantly showed great performance and recorded positive revenue growth. In FY 2022, OYO had a revenue of Rs 4781 crore, higher than its previous year's revenue of Rs 4157 crore.

Apart from this, the company's gross margin also increased from 36.31% in FY21 percent to 41.42% in FY22. Buying unlisted shares of OYO this time is beneficial as the price may increase when the company issues its IPO at the end of this year. You can check the company financials data in detail on Stockify, India's best place to buy unlisted shares of top-performing companies.

Here, you will get the updated share price of OYO and other companies like Tata Technologies, Studds, Religare Health Insurance, and more. We share the company's complete data, including its share price, market valuation, EBITDA ratio, Debt per equity, PAT, operation revenue, etc. You can easily ask any doubts or queries related to the company or shares from our experts. Start investing in trending blue-chip stocks before their listing in NSE/BSE with Stockify now!