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Oyo IPO Details
RHP/DRHPIssue Date
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Investment/lot
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Price Range
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Lot Size
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IPO Size
N/A
About Oyo IPO
The IPO of Oyo comprises a fresh issue and an offer for sale. The fresh issue aggregates up to ₹7000 crores and the offer for sale is up to ₹1430 crores. The total issue size is pegged at ₹8430 crores. It’s a book-built issue. The price band is TBA. The IPO opens on TBA and closes on TBA.
The listing date is on TBA and the allotment date is TBA. The credit of shares to the Demat account will take place on TBA, while the initiation of refund will take place on TBA.
Oyo is a leading, new-age technology platform empowering the large yet highly fragmented global hospitality ecosystem, according to RedSeer. It has been focused on reshaping the short-stay accommodation space since its incorporation in 2012.
Objectives of Oyo IPO
The company proposes to utilise the IPO proceeds for:
- Prepayment or repayment, in part, of certain borrowings availed by certain of its subsidiaries
- Funding organic and inorganic growth initiatives
- General corporate purposes
Oyo IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to ₹7000 crores |
Offer for Sale | Up to ₹1430 crores |
EPS in ₹ for FY 21 | (5.61) |
Oyo IPO Lot Size
| Application | Lots | Shares | Amount in INR |
|---|---|---|---|
Individual Investors (Retail) (Min) | TBA | TBA | TBA |
Individual Investors (Retail) (Max) | TBA | TBA | TBA |
HNI (Min) | TBA | TBA | TBA |
Oyo IPO Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 75% of the offer size |
Non-institutional Bidders | Not more than 15% of the offer |
Retail Individual Bidders | Not more than 10 % of the offer |
Industry Outlook
Within the travel and tourism industry, the short-stay accommodation market is one of the fastest growing segments. The short-stay accommodation segment refers to stays of up to one month, and the market comprises stays across hotels, homes, guesthouses, bed & breakfasts and campsites for tourists and travelers.
From 2015 to 2019, the total short-stay accommodation market grew at 7.5% CAGR to reach around US$ 1.3 trillion in 2019. While the industry dipped in 2020 due to COVID-19 restrictions, it is projected to revive back and reach US$1.1 trillion in 2021. Going forward, the industry is projected to grow at 6.6% CAGR from 2021 to 2030 to reach US$1.9 trillion in 2030. Also, it is projected that India will be one of the fastest growing short-stay accommodation markets globally, growing at ~13% annually between 2021 and 2025.
Company Information
Oyo is a leading, new-age technology platform empowering the large yet highly fragmented global hospitality ecosystem, according to RedSeer. It has been focused on reshaping the short-stay accommodation space since its incorporation in 2012 and has developed a unique two-sided technology platform focused on comprehensively addressing key pain points of its patrons (being the owners, lessors and/or operators of storefronts listed on its platform) on the supply side and its customers (being travellers and guests who book accommodations at its patrons’ storefronts through its platform) on the demand side.
Strengths of Oyo
- Scaled footprint with leadership in core growth markets
- Full-stack technology platform driving strong value proposition for its patrons and customers
- High degree of engagement with its patron and customer community
- Virtuous flywheel driven by strong network effects
- Inherent financial strength with strong unit economics
- Strong and trusted consumer brand
- Strong leadership team with deep experience
Risks of Oyo IPO
- History of net losses in each year since incorporation and ability to achieve profitability may be delayed
- May face difficulties in executing its expansion plans and implementing its growth strategies
- Failure to retain existing patrons and customers or acquire new patrons and customers in a cost-effective manner may decrease revenues
- Negative publicity could damage brand and thereby harm ability to compete effectively
- Failure to innovate and develop platform may result in suffering of business and results of operations
- Reliance on third-party distributors, travel management companies and global distribution systems to market and distribute storefronts, may adversely affect margins and profitability
- Adverse outcome in legal proceedings involving Zostel may materially and adversely affect business
- Business and activities may be regulated by competition laws of various jurisdictions
- Decline in the travel and accommodation industries or economic downturn could materially and adversely affect business
- Pricing methodologies and the revenue share may be impacted by a number of factors and it may not always be successful in attracting and retaining patrons and customers
All Financial Information about Oyo IPO (in ₹ crores)
Peer Comparison
There are no listed companies in India that engage in a business similar to that of Oyo. Hence, it is not possible to provide an industry comparison in relation to it.
Anchor Investor Bidding Date
TBA
IPO Registrar and Book Running Lead Managers
- IPO Registrar: Link Intime India
- Book Running Lead Managers: ICICI Securities, Nomura Financial Advisory, JM Financial and Deutsche Equities India
Business Model
Oyo’s business model relies on its patrons who list their storefronts on its platform and its large base of customers who book accommodations at its patrons’ storefronts through the platform.
The company distributes its patrons’ hotel and home storefront inventory through the D2C channels on its platform and through indirect channels with third party OTAs and generally earn an average revenue share of 20% to 35% of GBV (net of discounts and loyalty points), which creates strong alignment between the company and its patrons.
It also offers a listing only service, where patrons can list their storefronts on its platform for a fixed subscription fee.
Company Growth Trajectory
During fiscal 2020 and fiscal 2021, Oyo implemented several initiatives that strengthened its unit economics profile, while improving its value proposition for patrons and customers. As a result, its unit economics, measured based on contribution profit, improved from 5.1% in fiscal 2020 to 18.4% in fiscal 2021. Its adjusted EBITDA margin improved from (62.9) % in fiscal 2020 to (44) % in fiscal 2021. The number of storefronts increased from 21,616 in fiscal 2019 to 157,344 in fiscal 2021.
Market Position
As of March 31, 2021, Oyo had 157,344 storefronts across more than 35 countries listed on its platform. As of September 9, 2021, it had the largest footprint in terms of hotel storefronts in India and SEA (which includes Indonesia, Malaysia, Singapore, Thailand, Philippines and Vietnam) and the second largest footprint in Europe in terms of home storefronts among full stack short-stay accommodation players, according to RedSeer.
The company was also identified as the most valuable travel and hospitality brand in India and 30th most valuable brand overall in India by a study conducted by Kantar for 2020.
Oyo Profit and Loss (in ₹ crores)
| Parameter | FY21 | FY20 | FY19 |
|---|---|---|---|
Total Income | 4157.386 | 13413.268 | 6518.457 |
Profit / (Loss) Before Tax | NA | NA | NA |
Profit After Tax | NA | NA | NA |
EBITDA | (1869.454) | (6124.079) | (1854.592) |
EPS in ₹ | (5.61) | (20.43) | (3.85) |
Oyo Balance Sheet (in ₹ crores)
| Parameter | FY21 | FY20 | FY19 |
|---|---|---|---|
Profit / (Loss) Before Tax | NA | NA | NA |
Net Cash Used in Operating Activities | (2432.633) | (6765.079) | (2000.698) |
Net Cash Flow/ (used in) From Investing Activities | 1705.671 | (4682.824) | (2569.362) |
Net Cash Flow From Financing Activities | (477.119) | 10385.310 | 9074.603 |
Cash and Cash Equivalents at the End of the Year | 2261.776 | 3469.567 | 4542.971 |
How to Check Allotment Status of Oyo IPO?
1. Visit the Registrar’s Website
- Visit the website of Link Intime India
- Choose ‘Public Issues’ from Investor Services dropdown
- Choose the name of the company from ‘Select Company’ dropdown
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
- Click on Submit to check the status
2. Check on the National Stock Exchange Website
The National Stock Exchange (NSE) website has an IPO bid verification module. You can use it to check the allotment status of Oyo IPO. Go to the NSE website and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO bid verification page, enter:
- Company name from dropdown
- Application number
- PAN
Then click 'Submit' to know the allotment status.
3. Check on the BSE Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to the BSE website and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'Oyo' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search’ to know allotment status
How to Apply for the Oyo IPO?
To apply for this IPO:
- Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Oyo IPO FAQs
Where can I read more about Oyo business?
You can read more about Oyo and its IPO from the company’s red herring prospectus (RHP) here.
What is the Oyo IPO?
Oyo IPO consists of a fresh issue aggregating up ₹7000 crores and an offer for sale aggregating up to ₹1430 crores. The total offer size is pegged at ₹8430 crores.
When is the IPO of Oyo coming?
The exact dates of the IPO are yet to be announced.
Who is the Chairman of Oyo?
Ritesh Agarwal is the founder and Chairman of Oyo.
What is the lot size of shares in the Oyo IPO?
The lot size of shares in this IPO is yet to be announced.
From where can I read more about Oyo and its IPO?
You can read more about Oyo and its IPO from the company’s draft red herring prospectus here.