Oyo’s IPO to come after September
According to sources, considering the market situation, the company is now planning to launch the issue with a valuation lower than the $ 11 billion already.
The effect of the current market volatility is being seen on the IPO of the hospitality and travel sector company OYO. The company is now planning to bring its IPO after September. The company has written a letter to the market regulator SEBI in this regard, requesting it to update its application. The company had applied for IPO with SEBI in October last year. According to sources, considering the market situation, the company is now planning to launch the issue with a lower valuation than before. Earlier the plan was for a valuation of $11 billion, but now the company is ready for a valuation of $7-8 billion. According to the source, it is expected that after September the market conditions start improving due to which the issue can get better response. According to the source, in such a situation when the recovery in business is still going on. The company is assuming that the recovery figures should be acquired first, after which it should be landed in front of the investors. According to PTI, when contacted about this, the company did not respond.
Concern over the current market situation
Sources said that the sentiments among the people have worsened after seeing the performance of the stock prices of the recently listed company. The best way in such a situation is to win the trust of the investors with the help of the performance of the company. At present, there is good growth in the business of the company. In such a situation, Oyo can wait for one more quarter. According to the document filed by the company, Oyo had a loss of Rs 1744 crore in the financial year 2021. According to the proposed plan of the company, new shares worth Rs 7000 crore will be issued in the IPO and there is an offer for sale of Rs 1430 crore. Although it is now believed that the offer for sale will not come, the valuation of the company will be around $ 7 to 8 billion, which is less than the previous estimate of $ 11 billion. Earlier, when Oyo had raised $ 5 million from Microsoft, then this deal was done on the basis of valuation of $ 9.6 billion.
Source: www.tv9hindi.com
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