Indian budget hotel chain OYO has withdrawn its initial public offering (IPO) from the Securities and Exchange Board of India (SEBI) for the second time and is reportedly in talks to raise to $90 million, down 75% from its peak valuation.
The SoftBank-backed company had initially filed to go public in October 2021 for about $1 billion but delayed the share sale due to market conditions. On March 31, 2023, it submitted a confidential “pre-filing” document for a reportedly trimmed-down IPO.
Once valued at $10 billion, OYO is in talks with InCred to raise $80-90 million at a valuation of $3-4 billion, CNBC-TV 18 reported, citing sources.
The capital raised will be used to pay off the company’s debt in a bid to achieve profitability, the report said.
Backed by Peal XV, Microsoft, and Lightspeed, OYO will refile the draft red herring prospectus post the completion of re-financing plans to earn up to $450 million through the issue of dollar bonds which is being led by JP Morgan.
