Oyo files DRHP for $1.2 bn IPO; founder, key investors not diluting stake

The Covid-19 pandemic may have battered the hospitality sector across the globe, but it hasn’t deterred Ritesh Agarwal-led Oravel Stays (Oyo) from going public through an initial public offering (IPO).

The Gurugram-based travel technology company filed the draft red herring prospectus (DRHP) for its Rs 8,430 crore ($1.2 billion) IPO with the Securities and Exchange Board of India (Sebi) on Friday. According to sources, Oyo is looking for a valuation of $11-12 billion.

The company was valued at $9.6 billion after it raised $5 million from Microsoft in August. The offer comprises a fresh issue of equity shares worth Rs 7,000 crore and an offer for sale (OFS) of up to Rs 1,430 crore.