Oravel Stays Pvt. Ltd has filed the paperwork for a ₹8,430 crore initial public offer (IPO) that is expected to value the operator of the hospitality unicorn Oyo Hotels and Homes at least at $10 billion.
The initial share sale will see some of its investors, including Japan’s SoftBank Group, sell a part of their stake. The issue will comprise a primary capital raise of around ₹7,000 crore and stake sales by investors worth ₹1,430 crores.
SoftBank Group is selling shares worth ₹1,328.53 crores, while Grab, which put $100 million in Oyo in 2018, is selling approximately ₹51.6 crores worth of offers. Huazhu Hotels, which put resources into 2017, is selling roughly ₹23.13 crore. The family firm of Sunil Munjal of the Hero Group is likewise selling shares worth ₹26.71 crores.
Oyo’s founder Ritesh Agarwal won’t sell his offers. Moreover, Sequoia Capital and Lightspeed Ventures are not selling shares in the IPO.
The filing with the capital markets regulator is the latest example of a hurry to tap the public markets by Indian unicorn start-ups, including Paytm, Nykaa, Ixigo, and Policy Bazaar, in the midst of a confounding stock market rally. Bankers to the issue include Kotak Mahindra Capital, Citigroup, JP Morgan, ICICI Securities, Nomura, JM Financial, and Deutsche Bank.