Recently, it appears that the e-commerce business has been vying for all the glory! Unlisted e-commerce brands such as Oravel Stays, ANI Technologies (Ola), and One97 Communications have made a splash in the unlisted market, drawing retail and small investors to look up OYO share price, mostly owing to their brand’s token value!
OYO doesn’t need an introduction. OYO has been utilized by anybody seeking to book a hotel room at a reasonable rate on short notice. In the Indian market, OYO is seeking a large IPO. Some things you have to know about the OYO IPO include: –
- Oravel Stays Limited owns OYO Rooms and is the company that will issue the public offering. However, it is best recognized by the brand it represents, OYO Rooms, an online aggregator of short-term rentals and hotel rooms.
- The IPO is projected to be worth Rs.8,430 crore in total. This will include an Rs.7,000 crore new issuance and an Rs.1,430 crore offer for sale. In the OFS, SVF India Holdings, a subsidiary of Softbank Vision Fund, will tender shares worth Rs.1,329 crore.
- Ritesh Agarwal, the founder of OYO Rooms, owns a 24.94 percent share in Oravel Stays, OYO’s parent business. On the other hand, Ritesh will not be selling his stocks as part of the OFS and, therefore, will keep his whole ownership.
- Like most online start-ups, OYO Rooms has been losing money every year since its debut in 2012. OYO reported a net loss of Rs. 3,942 crore in FY21. OYO’s net losses in FY20 were substantially larger, at Rs.13,123 crore.
- OYO Rooms will utilize the proceeds from the Rs.7,000 crore fresh issuance to pay down debt and expand its company organically and inorganically. OYO had a combined debt of Rs.4,891 crore as of March 2021.
- The OYO concept is based largely on the Airbnb model, which originated in the United States. Airbnb was the first company to sell Bed and Breakfast accommodations via the internet. Airbnb is already worth more than the majority of the major hotel brands.
- OYO presently has approximately 157,000 shops (hotels and residences) in 35 countries. India, Malaysia, Indonesia, and Europe have the highest concentrations. After Jet Airways’ Inter Miles, OYO is India’s second-largest reward program.
Who is selling?
Among the prominent investors selling stocks in the offer are Softbank Group and Grab, which funded $100 million in OYO in 2018. Sunil Munjal, who made investments in 2017, and China Lodging Holdings are also selling their stakes.
Lightspeed Venture Partners, Star Virtue Investment Limited (Didi), Sequoia Capital, AirBnB, Greenoaks Capital, HT Media Ltd., and Microsoft Corp. are among the investors who aren’t diluting their stakes.
According to OYO, the short-stay accommodation sector is one of the most rapidly increasing tourism and travel business segments. This category includes hotels, homes, guesthouses, bed-and-breakfasts, and campgrounds for up to one month’s stay.
According to the report, most of the worldwide short-stay housing supply is independent, fragmented, and unorganized. The following is taken from OYO’s filings:
- According to OYO, the global short-stay market rose at an annualized pace of 7.5 percent from 2014 to 2019, reaching Rs 96.36 lakh crore.
- The disruption caused by Covid-19 in 2020 is expected to recover and reach Rs 81.54 lakh crore in 2021.
- Between 2021 and 2030, it’s predicted to rise at a 6.6 percent annualized rate to Rs 140.8 lakh crore.
- According to OYO, the market potential in the territories it operates is approximately Rs 57.22 lakh crore. Some of these markets are India, Western Europe, Southeast Asia, the Middle East, the United States, China, and Africa.
Before you look up the OYO share price, keep an eye on your investments and review it regularly, as each major event occurring anywhere in the world influences the financial markets. In addition, any financial event or news involving a specific stock or industry impacts that stock.