OYO IPO

About OYO IPO

OYO founder Ritesh Agarwal was once on a backpacking trip in India. His experience taught him that travellers have no idea about what to expect when it comes to picking budget hotels in India. In a bid to fill this gap in the hospitality industry, the then-19-year-old founded OYO in 2013. 

OYO Hotels is a digital platform that connects property owners or operators (including hotels and apartments) with travellers. Today, there are more than 1.5 lakh properties listed on OYO catering to a wide user base. Backed by marquee investors such as Softbank and strategic investment from Airbnb, OYO’s parent company Oravel Stays has expanded its footprint to 35 countries.  

Over the last two years, much like the rest of the hospitality and tourism industry, OYO too has faced a host of problems and challenges. The pandemic-led restrictions on movement dented its business.  A sharp drop in revenue and occupancy rates forced the company to trim its workforce and control costs.   

However, the pent-up demand for travel is expected to fuel recovery. After the restructuring, OYO is hoping to grow stronger and raise money to fuel business growth. The net proceeds from the fresh issue of OYO IPO will be used for repaying debt and funding organic as well as inorganic growth of the business. 

Here are the key details about the OYO IPO: 

Here’s a look at OYO’s financial performance 

Financial snapshot

Revenue: -21%; Net loss: NA (FY19-21 CAGR)

A quick look at OYO IPO’s strengths, risks and threats

Strengths 

1. Has an asset-light model and doesn’t own any of the storefronts listed on its platform 
2. Hasn’t inked any contract with its patrons for minimum guarantees or fixed payment commitments. This has enabled it to be capital-efficient 
3. Earns on an average 20% to 35% of the total booking amount  
4. Has the largest footprint in terms of hotel storefronts in India and South-East Asia
5. Over 2,700 patrons globally had more than one hotel or home storefront listed on its platform
6. Caters to a wide range of customers including millennials, corporates, families and small and medium businesses
7. Has 90 lakh loyalty programme members which drive higher repeat rates
8. Around 78% of its demand in FY21 came from repeat and organic traffic on its direct channels

Risks and threats

1. Pandemic-like events could trigger a fresh round of restrictions on tourist movement 
2. Incurred net losses in each year since incorporation
3. Failure to retain patrons and customers in a cost-effective manner
4. Operates in a highly competitive industry
5. Relies on third-party distributors, including online travel agency (OTAs), travel management companies and global distribution systems to market and distribute its storefronts
6. Dependence on mobile operating systems and application marketplaces to make its applications available to participants
7. Has a substantial amount of indebtedness, which requires significant interest and principal payments. As of July 2021, it had total outstanding debt of ₹4,890 crore

OYO IPO details

| OYO IPO date

The company has filed its Draft Red Herring Prospectus with the market regulator SEBI. The OYO IPO’s opening date – in other words, the OYO IPO launch date – hasn’t been announced yet. The OYO IPO closing date also hasn’t been declared. Along with these dates, investors will be updated about the OYO shares allotment date. 

Investors, who have been allotted shares, can expect them to be credited in their demat account after the allotment date. Besides this, the OYO IPO listing date hasn’t been announced yet. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  Stay tuned with Uptox for all the key updates about the OYO IPO.

| OYO IPO price band

The OYO IPO is a book-built issue. The OYO IPO price band hasn’t been set yet. The price band is a price range within which investors can apply for the IPO. When the OYO IPO opens, interested investors will have to choose a price within the band to apply for the public issue. 

The OYO IPO listing price will be determined on the listing date. The listing price is the price at which the shares of a company make their debut on the stock exchanges. 

| OYO IPO lot size 

The OYO IPO details haven’t been declared. Hence, the OYO IPO lot size also hasn’t been announced yet. It’s important to note that an investor can apply for a minimum of 1 lot. Individual investors applying under the retail category can only apply for up to 13 lots. Meanwhile, according to the news reports, the OYO IPO issue size could be in the range of $7 to $8 billion. 

How to apply for the OYO IPO?

If you are interested in this investment opportunity but unsure how to apply for the OYO IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the OYO IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘OYO IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the OYO IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the OYO IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your OYO IPO allotment status will be mentioned

Open a demat account with Upstox to apply for the OYO IPO

To apply for the OYO IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the OYO IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. 

You can apply for the OYO IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.