Oyo Considers Withdrawing IPO Application Amidst Plans to Raise Funds Privately

Oyo Hotel & Homes reportedly considers withdrawing its IPO application, opting to raise funds from private investors.

  • Oyo Hotel & Homes reportedly considers withdrawing its IPO application, opting to raise funds from private investors.
  • The decision follows discussions among stakeholders, with plans to secure new cash in the next six to eight months.
  • Former SBI Chairman Rajnish Kumar departs from his role as group strategic advisor at Oyo in December 2023.

Oyo Hotel & Homes, founded by Ritesh Agarwal, is allegedly finalizing plans to withdraw its initial public offering (IPO) application from the Securities and Exchange Board of India (Sebi). The company had filed a draft application for an IPO exceeding $1 billion in October 2021. Reports suggest that discussions regarding the withdrawal have been ongoing, with stakeholders informed about the potential decision, which is deemed “near imminent.” Instead, Oyo is contemplating raising fresh capital from private market investors within the next six to eight months.

Despite these reports, Oyo has neither confirmed nor denied the speculation officially. However, the company’s IPO journey faced setbacks previously when Sebi returned its first public offer filing in January 2023. Oyo was required to refile the draft red herring prospectus (DRHP) with updated information, including risk factors, key performance indicators (KPIs), and outstanding litigations. Following this, Oyo submitted a confidential pre-filing with Sebi for a smaller-sized IPO, aiming for a listing close to Diwali last year.

In another development, former SBI Chairman Rajnish Kumar concluded his tenure as group strategic advisor at Oyo in December 2023. While Oyo’s founder Ritesh Agarwal retains a 33% stake in the company, Japanese multinational investment holding company SoftBank holds a significant 46% stake. As Oyo navigates through these strategic decisions, the future trajectory of its IPO and fundraising endeavors remains uncertain.