New Delhi: Japan's SoftBank-backed hospitality company OYO has once again postponed its IPO. OYO's parent company, Oravel Stay, had earlier submitted documents to SEBI to bring an IPO in the Indian market, but now the company has withdrawn these documents. OYO had submitted its IPO documents to SEBI under the confidential filing route in March 2023. This is the second time OYO has withdrawn its IPO application.

Plans to raise $4 billion from private investors

Oyo founder Ritesh Agarwal said that the company has approached private investors to raise equity at a valuation of $4 billion. He gave this information in a town hall meeting, where he said this during a presentation in front of the company's employees.

Oyo trying to reduce debt

In the town hall meeting, Ritesh Agarwal said that the company could do a small equity round at a valuation of $3-4 billion or Rs 38-45 per share to reduce its debt. He also said that the company's operational profit, stable gross margins, and improvement in cost efficiency, as well as a reduction in interest costs after paying down some debt ahead of time, have increased Oyo's profitability.

2023-24: Oyo's first profitable year

For Oyo, FY 2023-24 was the first year when the company recorded a net profit. Oyo has earned a net profit of Rs 99.6 crore this year. The company recorded a consolidated EBITDA of Rs 888 crore in the entire financial year, which was Rs 274 crore last year.

Oyo may again apply for IPO

However, Oyo plans to file documents with SEBI again for its IPO. According to sources, Oyo is currently in talks with investors for a new round of funding at a minimum valuation of $2.3 billion. This represents a decline of more than 70% from Oyo's highest valuation of $9 billion.