{"id":10284,"date":"2022-09-21T10:49:09","date_gmt":"2022-09-21T05:19:09","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=10284"},"modified":"2022-09-23T04:53:25","modified_gmt":"2022-09-22T23:23:25","slug":"why-is-oyo-tapping-the-capital-markets-now","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/why-is-oyo-tapping-the-capital-markets-now\/","title":{"rendered":"Why Is Oyo Tapping the Capital Markets Now?"},"content":{"rendered":"\n<p>Oyo, formally known as Oravel Stays Ltd., is finally trying to tap the capital market and is working toward a January <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-investment\/\">IPO<\/a>. It plans to raise Rs. 7,000 cr. via a fresh <a href=\"https:\/\/www.tickertape.in\/blog\/issue-of-shares\/\">issue of shares<\/a> and another Rs. 1,430 cr. through an <a href=\"https:\/\/www.tickertape.in\/blog\/offer-for-sale\/\" data-type=\"post\" data-id=\"4413\">Offer-for-Sale<\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/why-is-oyo-tapping-the-capital-markets-now\/#Why-now-after-its-failed-attempt-earlier\" title=\"Why now after its failed attempt earlier?\">Why now after its failed attempt earlier?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/why-is-oyo-tapping-the-capital-markets-now\/#Changed-strategy\" title=\"Changed strategy\">Changed strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/why-is-oyo-tapping-the-capital-markets-now\/#Encouraging-results\" title=\"Encouraging results\">Encouraging results<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/why-is-oyo-tapping-the-capital-markets-now\/#Zoom-out-equity-market-scene-in-India\" title=\"Zoom out: equity market scene in India\">Zoom out: equity market scene in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/why-is-oyo-tapping-the-capital-markets-now\/#Cap-table-and-valuation-update\" title=\"Cap table and valuation update\">Cap table and valuation update<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why-now-after-its-failed-attempt-earlier\"><\/span><strong>Why now after its failed attempt earlier?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Oyo Hotels had a tough time during the Covid period. It had resorted to cost, and job cuts as business went into a tailspin. Oyo had filed preliminary IPO documents in September 2021 for a $1.1 bn IPO, only to shelve the listing plan earlier this year after the prolonged pandemic hurt its growth.&nbsp;<\/p>\n\n\n\n<p>Now, some positive signs augur well for the hospitality industry:<\/p>\n\n\n\n<ul><li>A report by Deloitte says the number of flights taking off and hotel reservations have enthused <a href=\"https:\/\/www.tickertape.in\/blog\/effective-money-saving-travel-hacks\/\">travel<\/a> industrialists.&nbsp;<\/li><li>Revival in business travels and in-person client interactions drives a positive trend in the hospitality sector.&nbsp;<\/li><li>The number of foreign tourists visiting India almost doubled between January and April this year.<\/li><li>According to the DGCA, the Indian aviation sector has rebounded with a growth of 4% in August. The number of domestic passengers who took a flight crossed the 1 cr. mark and reached 1.01 cr. \u2013 it was 97.06 lakh in July.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Changed-strategy\"><\/span><strong>Changed strategy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The company is focusing on four central regions: India, Malaysia, Indonesia, and Europe, where it manages vacation homes. It has cut down ops in the US and China.<\/li><li>The company stopped offering minimum guarantees. Instead, it now supports hotel and vacation home partners with technology, product services, and customer support. The self-service technology allows hotel owners to manage bookings and services directly on an app.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Encouraging-results\"><\/span><strong>Encouraging results<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The company said its FY2022 revenue came in at Rs. 4,905 cr., a growth of 18% from Rs. 4,157 cr. in FY2021.<\/li><li><a href=\"https:\/\/www.tickertape.in\/blog\/what-is-ebitda\/\">EBITDA<\/a> loss margins improved to -9.9% in FY2022 from -44% in FY2021.<\/li><li>For Q1 FY2023, the company reported revenue of Rs. 1,504.5 cr. and EBITDA of Rs. 10.57 cr.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Zoom-out-equity-market-scene-in-India\"><\/span><strong>Zoom out: equity market scene in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">Equity<\/a> markets have seen extreme <a href=\"https:\/\/www.tickertape.in\/blog\/volatility\/\">volatility<\/a> so far this year. Investors have had to deal with contrasting domestic and global economic outlooks.<\/li><li>In the last 8 months, only 16 companies have tapped the primary markets via the IPO route, raising around Rs. 40,300 cr.<\/li><li>Most companies have cited market conditions to delay or postpone their IPOs. Some of them are PharmEasy, Dreamfolks Services, Mamaearth, Flipkart, Swiggy, Ola Cabs and Byju&#8217;s.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cap-table-and-valuation-update\"><\/span><strong>Cap table and valuation update<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Ritesh Agarwal started Oyo. SoftBank Group founder Masayoshi Son was an early and enthusiastic backer who holds about 47% of the Gurgaon-based startup.&nbsp;<\/li><li>Agarwal owns about one-third of the shares in the company.<\/li><li>According to CB Insights, the startup was most recently valued at $9 bn.<\/li><\/ul>\n\n\n\n<p><strong>About the news author: <\/strong>This news post has been contributed by&nbsp;<a href=\"https:\/\/boringnews.co\/?referral=arpt98w9x&amp;utm_source=Tickertape&amp;utm_medium=Article&amp;utm_campaign=Oyo_20220920\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">The Boring News Co.<\/a>, which is a free daily email newsletter that gets you updated on the most important events across policy, business, international affairs, legal, and sports categories in under 5 minutes. They claim to deliver news with no sensationalism, gossip, political slugfests, or opinions \u2013 just the facts that matter in bullet points.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oyo, formally known as Oravel Stays Ltd., is finally trying to tap the capital market and is working toward a January IPO. It plans to raise Rs. 7,000 cr. via a fresh issue of shares and another Rs. 1,430 cr. through an Offer-for-Sale.<\/p>\n","protected":false},"author":103,"featured_media":10286,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1744],"tags":[],"acf":[],"modified_by":"Vyshakh","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/09\/10.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/10284"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=10284"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/10284\/revisions"}],"predecessor-version":[{"id":10351,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/10284\/revisions\/10351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/10286"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=10284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=10284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=10284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}