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OYO IPO

8,430 CroresHospitality
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IPO Dates

Important dates with respect to IPO allotment and listing

IPO Open Date

About Company

Started in 2012 as Oravel Stays and later rebranded as the OYO Hotels and Homes is one of the popular Indian startups. It entered India’s hospitality segment with fresh ideas that plan to provide an affordable and improved experience to every guest. This idea of introducing a hotel chain came to its founder Ritesh Agarwal in 2011 when he noticed the dearth of quality budget hotels across the length and breadth of India.

With his idea of bringing standardisation, he started OYO Hotels and Homes (then Oravel Stays). Following its debut, the company received funding from major venture capitals worldwide. In its 21 rounds of funding till 2021, OYO has garnered around $4.1 billion in funding. Some of the notable names in this list are SoftBank Group, Greenoaks Capital, Lightspeed India, and Sequoia Capital.

In these past 10 years, OYO has successfully extended its operations outside India in Japan, South-East Asia, the USA, and Europe. Simultaneously, its presence in India has grown manifolds.

OYO Hotels and Homes IPO Objectives

  • To prepay or repay debts availed of by different subsidiaries.

  • Support different organic and inorganic growth objectives.

  • Meeting general corporate purposes.

  • Carry out the offer for sale for participating stakeholders.

OYO Hotels and Homes – IPO Details

According to the DRHP filed by OYO Hotels and Homes with SEBI, the public issue is likely to be worth Rs. 8,430 crores. This will include an offer for sale of about Rs. 1,430 crores and a fresh issue equity share sale of Rs. 7,000 crores. Other details of this public issue, such as price band, market lot, and likes, have not been made public yet.

Moreover, the allocation for various shareholder segments is not available as well.

OYO Hotels and Homes has appointed the following as the book running lead managers of this IPO –

  • ICICI Securities Limited

  • Kotak Mahindra Capital Company Limited

  • JM Financial Limited

  • Citigroup Global Markets India Private Limited

  • J.P. Morgan India Private Limited

  • Deutsche Equities India Private Limited

  • Nomura Financial Advisory and Securities (India) Private Limited


Apart from that, Link Intime India Private Limited is the registrar of this IPO.

Why Should I Invest in the OYO Hotels and Homes IPO?

Here are some reasons why you can consider investing in the initial public offering of OYO Hotels and Homes –

  1. The COVID-19 pandemic posed a significant financial challenge for the company and stretched its finances to limits. But, it has managed to recover from that position. With a new business approach, OYO Hotels and Homes are planning to trim its non-performing business portions and focus on generating greater returns.
  2. Microsoft has recently formed a partnership with OYO and invested a significant amount in developing an operating system. It will implement a SaaS service to aid businesses in the hospitality services to streamline their operations better.
  3. It still has the confidence of its stakeholders, even after recent legal and financial troubles, which is a sign of stability. It is always positive news.
  4. Lastly, the brand value of OYO is still a strong one and is expected to target a $10 billion valuation with this IPO.

IPO Financials

Financial yearProfit After TaxTotal Assets Total Income
March 2021 Rs. 39,438.44Rs. 87,510.48 Rs. 41,573.86
March 2020Rs. 1,31,227.77Rs. 1,41,089.82 Rs. 1,34,132.68
March 2019Rs. 23,645.32Rs. 1,17,426.08 Rs. 65,184.57

Know before investing

Strengths

4

  1. OYO’s expansion has been one to take note of. From one city of India to a vast network covering South-East Asia, Europe, and the USA. Based on the customer demands, the company has increased its network.

  2. OYO’s expansion has been one to take note of. From one city of India to a vast network covering South-East Asia, Europe, and the USA. Based on the customer demands, the company has increased its network.

  3. OYO Hotels and Homes have led the segment with its innovation. They were the pioneers of budget stays in India and implemented this concept successfully. Also, after the recent turbulence, they have devised a change in a business plan to save the company.

Risks

4

  1. Different brands are also entering this segment of budget hotels, which will bring strong competition to OYO.

  2. Apart from their OYO Rooms, other ventures of the company did not bring enough success.

  3. Since the base of OYO has been budget stays; the profit margins have consistently remained low.

  4. The company has been in a tussle with hotel owners and other associated parties over the revenue share. This has also hampered its operations significantly.

  • How to Apply in IPO
  • How to Check IPO Allotment Status
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Login to Angel One App / Website & click on IPO

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Select desired IPO & tap on "Apply"

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Enter UPI ID, set quantity/price & submit

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Accept mandate on the UPI app to complete the process

OYO IPO FAQs

To apply for an IPO using the Angel One app, refer to the steps stated below – Step 1: Visit the ‘investment opportunities’ option on the mobile app of Angel One Step 2: Navigate to the ‘IPOs and FPOs’ section and enter all the required details Step 3: Provide your NPCI certified UPI handle Step 4: After that, click on ‘invest’ and submit your bid for this IPO of OYO Hotels and Homes
Yes, it is possible to apply for the IPO of OYO Hotels and Homes without using a UPI ID. In this regard, you can take the help of the ASBA process offered by your respective banks. However, if you do not have a UPI ID currently, you can simply create one without any delays through the UPI handles mentioned on the NPCI List.
You can locate a UPI ID in the ‘profile’ section of the Angel One app.
In case you cannot locate your UPI ID under the dropdown menu of the Angel One App, it means that your existing UPI ID may not have NPCI’s approval. In such an instance, you can just create a new one with any of the UPI handles sanctioned and declared under the NPCI List.
Yes, it is imperative to accept a UPI mandate for this OYO Hotels and Homes IPO or any other public issue as soon as you get it. Nonetheless, this window of approval remains open from the closing bell of the former working day to 12 noon the next one.
To accept a UPI mandate request for this public issue of OYO Hotels and Homes, you can simply use a UPI App. Nevertheless, you can click here to understand the details of this process and associated steps.
The nominal time needed to block funds for an IPO subscription depends on how quickly you accept the UPI mandate request. Once you approve it, banks will freeze the required funds for an IPO. However, if you fail to get an allotment, or your UPI mandate expires, the banks will unblock these funds. If your funds are not unblocked even after that, you can contact your respective banks for further clarification.
The minimum time required to get a UPI mandate request after submitting a bid for any IPO is 10 to 15 minutes. However, this process can get delayed at times due to various reasons.
The possible reason why you cannot submit bids for the IPO of OYO Hotels and Homes through your current UPI ID is that this UPI handle may not have NPCI’s approval. In that case, you can quickly create a new one using any of the service providers mentioned under the NPCI’s list to extend UPI service. You can just finish the due process and then bid for any public issue you want.
If the status of your IPO mandate request is displaying pending on the Angel One app, there is nothing you can do about it. Since the Angel One app is not equipped to display real-time updates of UPI mandate requests, you cannot see the current status. However, if you have accepted it, you can find its actual status in the order book of a public issue after a while.
To create a UPI ID via the BHIM app, you can refer to the steps mentioned below – Step 1: Download and install the BHIM UPI app on your mobile phone. Step 2: Review and authenticate your mobile number and create a password or PIN needed to access this app. Step 3: Choose a bank from the list of financial institutions stated on NPCI’s list of registered services providers. Step 4: BHIM UPI App will then fetch your bank account information automatically. Step 5: On the other hand, if you have multiple bank accounts, choose one that you want to register and link with this app. Step 6: Set up a personal UPI ID for security reasons. After that, you can see your UPI ID in the ‘Profile’ section of this app.
Yes, it is possible to bid for this initial public offering of OYO Hotels and Homes using a bank account, which is not linked with the Angel One app. In such instances, the bank account you are applying through must be in your name.
No, it is not possible to apply for the IPO of OYO Hotels and Homes or any other organisation, using a current account. The reason is, IPO applications made via such accounts are not accepted, it is better to use a savings account as an alternative for this purpose. Moreover, you can talk to any representative of your respective banks for additional details.
No, it is not possible to apply for the public offering of OYO Hotels and Homes through a Hindu Undivided Family account. Alternatively, if you apply for any IPO via the ASBA process, in such cases, you can take the help of this account.
No, it is not possible to apply for the public offering of the OYO Hotels and Homes or any other company through your minor daughter’s account and using the Angel One platform. On the contrary, a minor can apply for any public issue using the ASBA process.
No, NRIs cannot use the Angel One app to apply for the public issue of OYO Hotels and Homes. Nevertheless, they can always take assistance of the ASBA or Application Supported by Blocked Amount process extended by different banks to bid for any public issue of their choice.
No, you need not to bear any extra charges to bid for this public issue of OYO Hotels and Homes using the Angel One platform.
No, you cannot submit multiple bids for a public issue using one PAN. The reason being, in such instances, IPO applications get rejected as per the existing rules. Therefore, you will fail to get an allotment for this public offering of OYO Hotels and Homes or any other firm.
A cut-off price is a price point at which the equity shares of OYO Hotels and Homes or of other companies get listed on the share market. This is a pre-set price and is primarily decided during the allotment stage of an IPO. Moreover, if you submit a bid at this price, it suggests that you are willing to apply for the public issue of OYO Hotels and Homes at this price point. Also, applying at a cut-off price improves your chances of receiving an IPO allotment.
The reason for the IPO related funds not being debited even after submitting the bids is that banks do not release funds related to a public issue just after you submit a bid. Instead, they will block this amount momentarily, and once you receive an allotment, they will debit it. On the other hand, if you do not receive an allotment or your UPI mandate expires, banks will release this amount.
It is not possible to guarantee allotment for any public issue, irrespective of the company you choose to apply for. In the event of an oversubscription, which is a common affair, the allocation of shares is done via a lottery system. So, it is not possible to provide any assurance in this regard. A point to keep in mind here is that the Angel One platform only allows you to apply for an IPO, and it does not offer any guarantee regarding its allocation. However, you can improve your odds by keeping the below-mentioned points in mind –
  • Applying at the cut-off price.
  • Using a Demat Account linked with your PAN.
  • Confirm that your bank account and UPI ID are linked through a single PAN, and failing to keep that can lead to rejection. For instance, person X has applied for the OYO Hotels and Homes IPO via his Demat Account but person Y’s UPI ID. In such cases, the application can get rejected due to – Person Y’s UPI ID is not linked with X’s PAN
Person X’s Demat account is not linked with Y’s bank account
Yes, you can change the IPO bid of this OYO Hotels and Homes even after submitting its final application. Here, you have the opportunity to change your UPI ID and the lot size. Nonetheless, a point to remember here is that, if you make any changes following the approval of your UPI mandate request, it will be then regarded as a new bid. Therefore, banks will block your bid amount beside your existing one. Additionally, you will get a new UPI mandate request like before.
Possible reasons behind the rejection of your IPO application for OYO Hotels and Homes are –
  • Failing to ensure that your Demat account, UPI ID, and bank account are connected with the same PAN.
  • Entering an incorrect UPI PIN while approving the mandate
For example, if you use your Demat account to apply for this public issue and use your friend’s UPI ID to make payment. In that case, your application can get rejected –
  • If your PAN and your friend’s UPI ID are not connected.
  • If your Demat account is not linked with your friend’s bank account.
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