Oyo increases authorised share capital ahead of IPO
An extraordinary general meeting of Oravel Stays on September 1 approved the resolution to increase its authorised share capital, according to a company’s filing with the Registrar of Companies (RoC). The increase is from the existing Rs 1,17,80,010 to Rs 9,01,13,59,300. Authorised capital is the maximum amount of capital that a company is allowed to issue at any point of time.
Queries sent to the company by PTI for comment on the development remained unanswered.
Oyo IPO details
Oyo is likely to file its draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI) in the next few months, sources said. The company aims to raise $1.2-1.5 billion at a valuation of $14-16 billion.
Internally, the company has set a timeline of September for filing its IPO papers and wants to be a public company before the calendar year ends, ET
reported on August 9. It has initiated talks with multiple bankers including JPMorgan, Citi and Kotak Mahindra Capital to manage its public issue, they said. “Work has begun and some bankers have been finalised,” said a person aware of the matter. “They are aiming to file the DRHP by September.”
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Pre-IPO fundraising
In a precursor to the IPO, Oyo had in August
raised fresh capital from Microsoft Corp. by way of equity shares and compulsory convertible cumulative preference shares on a private placement basis. In July, it
raised $660 million through the Term B loan route from global institutional investors, including Fidelity Investments, to refinance and simplify its existing borrowings.
Post-Lockdown Revival
Oyo is seeing a revival in business in markets such as India and Europe as the number of Covid-19 cases have been falling and vaccination rate improving. Oyo told ET last month that it was seeing stronger recovery in Europe on the back of higher vaccination rates and that India would also reflect the same once more people are vaccinated, at least once.
Currently, 43% of Oyo’s revenue comes from India and Southeast Asia while 28% comes from Europe and the rest from other global markets. The company was forced to cut down its operations in markets like the US and China amid the virus outbreak. In India, it fired a chunk of its workforce as Covid-19 hit its business hard.
With inputs from PTI.
( News Source :Except for the headline, this story has not been edited by Rashtra News staff and is published from a economictimes.indiatimes.com feed.)
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