OYO IPO: Hospitality firm OYO is looking to reduce the size of its initial public offering (IPO) to half or even postpone it. Bloomberg has given this information citing sources on Thursday. OYO had submitted an application to market regulator SEBI last year to launch an IPO.
OYO’s parent company Orwell Stage Ltd may cut its IPO size by half in view of the recent fall in the market, sources said. Oyo was earlier in the plan to bring an IPO of about $1 billion. However, now its size can be reduced to $ 500 million.
Sources in the report said that OYO is also considering slashing its estimated valuation by half from the original target of $12 billion. He said that Oyo may also consider canceling its IPO plan. Let us tell you that the IPO of Oyo, which is invested by SoftBank and Airbnb, has been awaited in the market for a long time.
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Why IPO has to be postponed
Shares of several newly listed tech companies were badly beaten during the recent market crash. Due to this, the enthusiasm of investors about such companies has cooled down a bit. At the same time, Russia’s invasion of Ukraine has also increased the volatility in the market and this has also affected the market sentiment.
Earlier there were reports that OYO Hotels & Homes is preparing to raise around Rs 8,430 crore through IPO. In this, fresh shares worth Rs 7,000 crore will be issued, while shareholders and investors of the company will put up for sale their shares worth Rs 1,430 crore.
Delhivery also postponed IPO
Some sources said Delhivery had postponed its nearly $1 billion IPO for the fiscal year starting in April. He said that the company is also reviewing its listing plan after the stock market regulator’s displeasure over the plan to sell a significant number of shares to investors in the IPO. Along with SoftBank, the Carlyle Group Inc-invested logistics startup had earlier planned to list by March.
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