Oyo, a company that has become a big name in the hotel and travel world, is now preparing for its IPO. It is reported that the company may file its IPO draft (DRHP) to SEBI in November. Oyo is eyeing a value of about 8000 crores this time. According to a report by Mint, Oyo can propose this week or next week in the board meeting. Only then will it be decided when and how the company will come in the market.
Oyo’s share can be available at a rate of ₹ 70
It is being told that Oyo’s stock can be kept around ₹ 70. This price sits 25 to 30 times more than the company’s profits. That is, the company hopes that its brand and business people will like it so much that they will be ready to buy shares at this price too. In the last few weeks, Oyo has interacted with many big banks like Axis Bank, Goldman Sachs, City Bank, ICICI Bank.
After this conversation, the company feels that the atmosphere in the market is favorable and investors are ready. When Oyo was asked about this, the company spokesperson said that the date for filing an IPO has not been fixed yet. The company is currently considering many options so that investors can get good returns. He clearly said that the final decision on this will take the board of Oyo and whenever something is decided, information will be given.
Company in preparation to bring a new name and app
Oyo is preparing to give a new look to its brand identity not only to enter the stock market. Oyo’s parent company is planned to change the name of ‘Oravel Stage Limited’. For this, earlier this year, CEO Ritesh Aggarwal also asked people to suggest a new name on social media. Also, the company is thinking of bringing such a new app that will be only for premium hotels and mid-market hotels with good service. Oyo believes that this segment is growing rapidly, especially in India and abroad.
Softbank is the largest shareholder
Softbank still has a big stake in Oyo. The company has played the role of Softbank in the IPO to find the pulse of the market. Softbank, along with Oyo, talked to banks and understood the market response. After these discussions, now the company is confident that this is the right time when it can enter the market again and win the trust of investors.