Another setback for OYO before IPO, SoftBank Group reduced valuation by 20% to $ 2.7 billion

Giant Japanese investment firm SoftBank Group Corp has slashed the valuation of Oyo Hotels by over 20 per cent. Bloomberg gave information in a report citing sources. SoftBank has slashed the valuation of OYO in its books at a time when it is preparing to launch its initial public offering (IPO).

SoftBank is the largest investor in hotel booking firm OYO. According to the report, it has reduced the estimated value of Oyo to $ 2.7 billion in the June quarter from $ 3.4 billion earlier. OYO’s valuation reached $10 billion during a funding round in 2019, though it has declined steadily since then.

OYO’s parent company is Oravel Stays Ltd. Orwell Stages earlier this week filed fresh documents with market regulator SEBI to launch the IPO. The firm has added several new details, including the results for the first quarter of FY23, in the new draft red herring prospectus (DRHP) submitted to SEBI. In this, the results of the first quarter of FY23 have been updated.

Also read- LIC Share: LIC reaches its lowest level after listing, trading 32% below IPO price

This is not the first time that Oyo’s founder Ritesh Agarwal is planning to bring the company’s IPO. OYO had also submitted draft papers with SEBI in October last year for bringing an IPO worth Rs 8,430 crore. However, later the company had to face some controversies due to one of its old transactions. Along with this, questions were also raised on its valuation.

After this news came that Oya is considering to reduce the size of its IPO. There were also reports that the company had earlier kept its valuation around US$11 billion, but later agreed to IPO at a lower valuation of around US$7-8 billion.

However, Oyo’s business was severely affected due to the Corona epidemic, due to which it had to face a lot of difficulties in recovering. In such a situation, earlier this year, the company had to postpone the IPO plan.

Related Articles

Back to top button