SoftBank Group-backed Indian hospitality startup, Oyo Hotels and Rooms, is expected to file an initial public offering (IPO) next week to raise about $ 1 billion, a source told Reuters on Thursday.
The hotel aggregator is considering a listing in the financial capital of Mumbai, and the initial public offering is IPO is tentatively pegged at between $1 billion and $1.2 billion( â‚¹8,000 crore), adding that it will consist of a fresh issue of shares and an offer to sell from existing shareholders.
The listing plan follows a stellar debut by food delivery firm Zomato Ltd in July. Berkshire Hathaway Inc-backed Paytm, and TPG-backed private equity firm TPG also applied for an initial public offering. Ola, which is also backed by SoftBank, is also preparing to enter the markets.
Oyo, in which SoftBank has a 46% stake and is one of its biggest bets, has suffered months of layoffs, cost cuts and losses during the global health crisis.
Its founder and CEO, Ritesh Agarwal, had said in July that business was likely to return to the levels it had before the second wave of COVID-19 infections in India and "will grow from there."
Last month, Oyo received a $ 5 million investment from Microsoft Corp. Kotak Mahindra Capital, JP Morgan and Citi are the bankers advising Oyo on the IPO, the source said.
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