Oyo IPO plans revives, revenue and cost shown
Oyo IPO plans – Oyo, a company in the hospitality industry, is back on the market to resurrect its IPO prospects. To the Draft Red Herring Prospectus it submitted to the Securities and Exchange Board of India (SEBI) in September of last year, the company has filed an addition.
The corporation provided financial information for the years FY20, FY21, and FY22 in the addendum. It also disclosed financial information for the current fiscal year. The parent company of OYO, Oravel Stays Private Limited, has three revenue streams as part of its business model: hotels, houses, and the listings business.
The corporation also cited the rise of stores as one of its main revenue-generating factors. The company ascribed the same to its listings business and its acquisition of vacation homes in Europe. While the COVID-19 pandemic caused the Gross Booking Value (GBV) to decline in FY21 compared to FY20, it grew once more in FY22 compared to FY21 due to the tourism industry’s rebound.
Oyo IPO plans
According to the report, the company’s revenue from client contracts decreased by 69.9 percent from Rs 131,681.52 million in FY20 to Rs 39,616.49 million in FY21, but increased to Rs 47,813.62 million in FY22.
In FY22, the company’s adjusted gross profit increased to Rs 19,159 million from Rs 13,137 million, and in the first quarter of FY23, it reached Rs 6,022 million.
Employee benefits costs, marketing and promotion costs, and general and administrative costs are seen by the corporation as the main cost drivers, according to the addendum.
The company’s intentions to debut on the stock market last year were derailed by the COVID-19 pandemic. But now that the economy and the travel sector are practically recovering, the corporation appears prepared to move forward.
According to the company’s DRHP, the planned offering consisted of a fresh issue of equity shares worth up to Rs 7,000 crore and an offer for sale for Rs 1,430 crore. Ritesh Agarwal launched the business in 2012. A 2023 stock market debut for the company is being planned, according to a Bloomberg article.