OYO Hotels and Homes IPO

Started in 2012 as Oravel Stays and later rebranded as the OYO Hotels and Homes is one of the popular Indian startups. It entered India’s hospitality segment with fresh ideas that plan to provide an affordable and improved experience to every guest. This idea of introducing a hotel chain came to its founder Ritesh Agarwal in 2011 when he noticed the dearth of quality budget hotels across the length and breadth of India.

With his idea of bringing standardisation, he started OYO Hotels and Homes (then Oravel Stays). Following its debut, the company received funding from major venture capitals worldwide. In its 21 rounds of funding till 2021, OYO has garnered around $4.1 billion in funding. Some of the notable names in this list are SoftBank Group, Greenoaks Capital, Lightspeed India, and Sequoia Capital.

In these past 10 years, OYO has successfully extended its operations outside India in Japan, South-East Asia, the USA, and Europe. Simultaneously, its presence in India has grown manifolds.

OYO Hotels and Homes IPO Objectives

  • To prepay or repay debts availed of by different subsidiaries.

  • Support different organic and inorganic growth objectives.

  • Meeting general corporate purposes.

  • Carry out the offer for sale for participating stakeholders.

OYO Hotels and Homes – IPO Details

According to the DRHP filed by OYO Hotels and Homes with SEBI, the public issue is likely to be worth Rs. 8,430 crores. This will include an offer for sale of about Rs. 1,430 crores and a fresh issue equity share sale of Rs. 7,000 crores. Other details of this public issue, such as price band, market lot, and likes, have not been made public yet.

Moreover, the allocation for various shareholder segments is not available as well.

OYO Hotels and Homes has appointed the following as the book running lead managers of this IPO –

  • ICICI Securities Limited

  • Kotak Mahindra Capital Company Limited

  • JM Financial Limited

  • Citigroup Global Markets India Private Limited

  • J.P. Morgan India Private Limited

  • Deutsche Equities India Private Limited

  • Nomura Financial Advisory and Securities (India) Private Limited


Apart from that, Link Intime India Private Limited is the registrar of this IPO.

Issue Type

Book-built

Listing at

BSE and NSE

Issue Size

Rs. 8,430 crores

Price Band

Not Available

Face Value

Rs. 1

per equity share

Lot Size

Not Available

Maximum Order Quantity

Not Available

Listing at NSE, BSE

OYO Hotels and Homes - Important Dates

IPO Event Date
IPO Opens on Not Available
IPO Closes on Not Available
Basis Of Allotment Publication Date Not Available
Credit Of Shares To Demat Account Not Available
Initiation Of Refunds Not Available
IPO Listing Date Not Available

Why Should I Invest in the OYO Hotels and Homes IPO?

Here are some reasons why you can consider investing in the initial public offering of OYO Hotels and Homes –

  1. The COVID-19 pandemic posed a significant financial challenge for the company and stretched its finances to limits. But, it has managed to recover from that position. With a new business approach, OYO Hotels and Homes are planning to trim its non-performing business portions and focus on generating greater returns.
  2. Microsoft has recently formed a partnership with OYO and invested a significant amount in developing an operating system. It will implement a SaaS service to aid businesses in the hospitality services to streamline their operations better.
  3. It still has the confidence of its stakeholders, even after recent legal and financial troubles, which is a sign of stability. It is always positive news.
  4. Lastly, the brand value of OYO is still a strong one and is expected to target a $10 billion valuation with this IPO.

Financial Highlights

Financial Year Total Assets Total Income Total Expenses Profit After Tax
March 2021 Rs. 87,510.48 Rs. 41,573.86 Rs. 69,360.75 Rs. (39,438.44)
March 2020 Rs. 1,41,089.82 Rs. 1,34,132.68 Rs. 2,28,001.20 Rs. (1,31,227.77)
March 2019 Rs. 1,17,426.08 Rs. 65,184.57 Rs. 88,094.28 Rs. (23,645.32)

**Note: Amount mentioned here in million

How to Apply for OYO Hotels and Homes IPO?

You can apply for the OYO Hotels and Homes IPO in these ways:

Demat Account

  • Applying for this IPO of OYO Hotels and Homes is not difficult anymore. Potential investors bid for it using a Demat account. Additionally, they can open and access this account without bearing any additional charges using the Angel One platform. After receiving their login details, investors can bid for this IPO of OYO Hotels and Homes or any other public offering of their choice.

  • On the other hand, current clients of Angel One can click here to submit bids for this IPO of OYO Hotels Homes.

UPI

  • Using a UPI ID can be another way of applying for this public offering of OYO Hotels and Homes. Once you have linked your bank account with your UPI ID, you need to then connect it with the Angel One App, and you can then apply for this public issue.
  • Afterwards, you can use the UPI option on the Angel One App or website to bid for an IPO of your choice. Besides, you can take the help of your UPI apps to block the subscription amount needed for an IPO.

OYO Hotels and Homes IPO – Noteworthy Highlights

Here are some notable highlights about OYO Hotels and Homes that one should know before investing –

  • The patrons of OYO can now use their platform to manage their business operations. There are more than 40 products and services that offer services like sign-up and on-boarding, daily operation management, revenue management, etc. OYO OS and Co-OYO are two D2C applications that need mentioning.

  • As of 31 March 2021, OYO has more than 1.5 lakh storefronts in 35+ countries listed on this platform.

  • In 2020, OYO was the third most downloaded travel app in the world and 1st in Asia on that same metric. It had more than 100 million downloads in this period.

  • The loyalty program run by OYO, i.e. OYO Wizard has more than 9.2 million subscribers. It is the highest loyalty program from a travel brand in India.

OYO Hotels and Homes IPO – SWOT Analysis

strengths

Strengths

  • Strong brand value and awareness:

    OYO Hotels and Homes has, over the years, created a strong brand equity and awareness. Moreover, that is also in a business segment where the profit margins are not that high. Therefore, it has played a direct part in its growth.

  • Ever-expanding network:

    OYO’s expansion has been one to take note of. From one city of India to a vast network covering South-East Asia, Europe, and the USA. Based on the customer demands, the company has increased its network.

  • Innovation:

    OYO Hotels and Homes have led the segment with its innovation. They were the pioneers of budget stays in India and implemented this concept successfully. Also, after the recent turbulence, they have devised a change in a business plan to save the company.

Weaknesses

Weaknesses

  • Failure of other ventures:

    Apart from their OYO Rooms, other ventures of the company did not bring enough success.

  • Low-profit margins:

    Since the base of OYO has been budget stays; the profit margins have consistently remained low.

  • Repeated troubles:

    The company has been in a tussle with hotel owners and other associated parties over the revenue share. This has also hampered its operations significantly.

Opportunities

Opportunities

  • Post-COVID market:

    As the pandemic is in its latter stages and travelling has resumed across the globe, OYO can expect to deliver positive results.

Threats

Threats

  • Competition from other brands:

    Different brands are also entering this segment of budget hotels, which will bring strong competition to OYO.

Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Brand recognition: The company has a global footprint in more than 24 countries with a partnered network of over 1.5 million restaurants.
  • Business model: Zomato follows a B2C business model that connects customers to a wide network of restaurants. The company has an asset-less business model, giving it high financial leverage.
  • Marketing: Zomato follows a robustly creative marketing strategy both online and offline. Accordingly, it has a decent customer engagement and has over 11.2 million active users each month.
  • User-friendly: The Zomato app and web portal come with an easy-to-navigate UI.

Weaknesses 

  • Competition: Newer food delivery platforms with unique offerings are mushrooming now more than ever. It not only limits Zomato’s market expansion scope but also imposes a threat to its existing customer base.
  • Business model: Though Zomato’s business model is currently working in its favour, there are high chances tech developments could impose a foundational threat. If Zomato stops innovating and improving its customer service, its very successful business model could restrain its potential.

Opportunities 

  • Market expansion: Zomato is active in 25 countries. Moreover, it has not reached the saturation point yet. Therefore, given its current market momentum and growth potential, it can be expected that the food delivery service will witness upward mobility and rapid market expansion in the next couple of years.
  • Online users: The percentage of smartphones users with interest access is increasing every day. This opens up a great growth opportunity for Zomato to expand its target base and market presence.
  • Technological development: As the tech space continues to bring in newer innovations, it could open newer paths for Zomato to explore.

Threats 

  • Competition: Newer food delivery platforms with unique offerings are mushrooming now more than ever. It not only limits Zomato’s market expansion scope but also imposes a threat to its existing customer base.
  • Business model: Though Zomato’s business model is currently working in its favour, there are high chances tech developments could impose a foundational threat. If Zomato stops innovating and improving its customer service, its very successful business model could restrain its potential.

Competitive Analysis: Market Peers

OYO Hotels and Homes currently has no listed market peers to compare with.

OYO Hotels and Homes IPO FAQs

1. How to file an application for the public issue of OYO Hotels and Homes through the Angel One App?

To apply for an IPO using the Angel One app, refer to the steps stated below –

Step 1: Visit the ‘investment opportunities’ option on the mobile app of Angel One

Step 2: Navigate to the ‘IPOs and FPOs’ section and enter all the required details

Step 3: Provide your NPCI certified UPI handle

Step 4: After that, click on ‘invest’ and submit your bid for this IPO of OYO Hotels and Homes

2. Is it possible to apply for the public offering of OYO Hotels and Homes without using a UPI ID?

Yes, it is possible to apply for the IPO of OYO Hotels and Homes without using a UPI ID. In this regard, you can take the help of the ASBA process offered by your respective banks. However, if you do not have a UPI ID currently, you can simply create one without any delays through the UPI handles mentioned on the NPCI List.

3. How to locate a UPI ID in the mobile app of Angel One?

You can locate a UPI ID in the ‘profile’ section of the Angel One app.

4. I cannot find my UPI ID in the dropdown menu of the Angel One App when applying for this public issue of OYO Hotels and Homes. What is the reason?

In case you cannot locate your UPI ID under the dropdown menu of the Angel One App, it means that your existing UPI ID may not have NPCI’s approval. In such an instance, you can just create a new one with any of the UPI handles sanctioned and declared under the NPCI List.

5. Is it vital to accept a UPI mandate as soon as I get it?

Yes, it is imperative to accept a UPI mandate for this OYO Hotels and Homes IPO or any other public issue as soon as you get it. Nonetheless, this window of approval remains open from the closing bell of the former working day to 12 noon the next one.

6. How to accept a UPI mandate request for this IPO of OYO Hotels and Homes?

To accept a UPI mandate request for this public issue of OYO Hotels and Homes, you can simply use a UPI App. Nevertheless, you can click here to understand the details of this process and associated steps.

7. What is the nominal time required to block or unblock funds for an IPO subscription?

The nominal time needed to block funds for an IPO subscription depends on how quickly you accept the UPI mandate request. Once you approve it, banks will freeze the required funds for an IPO.

However, if you fail to get an allotment, or your UPI mandate expires, the banks will unblock these funds. If your funds are not unblocked even after that, you can contact your respective banks for further clarification.

8. What is the minimum time needed to get a UPI mandate request following the submission of an IPO application?

The minimum time required to get a UPI mandate request after submitting a bid for any IPO is 10 to 15 minutes. However, this process can get delayed at times due to various reasons.

9. I cannot bid for this OYO Hotels and Homes IPO using my existing UPI handle. What can be the reason?

The possible reason why you cannot submit bids for the IPO of OYO Hotels and Homes through your current UPI ID is that this UPI handle may not have NPCI’s approval. In that case, you can quickly create a new one using any of the service providers mentioned under the NPCI’s list to extend UPI service. You can just finish the due process and then bid for any public issue you want.

10. I have approved the UPI mandate request of the public offering of OYO Hotels and Homes, but its status on the Angel One App is showing pending. What is the reason?

If the status of your IPO mandate request is displaying pending on the Angel One app, there is nothing you can do about it. Since the Angel One app is not equipped to display real-time updates of UPI mandate requests, you cannot see the current status. However, if you have accepted it, you can find its actual status in the order book of a public issue after a while.

11. How to create a UPI ID through the BHIM app?

To create a UPI ID via the BHIM app, you can refer to the steps mentioned below –

Step 1: Download and install the BHIM UPI app on your mobile phone

Step 2: Review and authenticate your mobile number and create a password or PIN needed to access this app

Step 3: Choose a bank from the list of financial institutions stated on NPCI’s list of registered services providers

Step 4: BHIM UPI App will then fetch your bank account information automatically

Step 5: On the other hand, if you have multiple bank accounts, choose one that you want to register and link with this app

Step 6: Set up a personal UPI ID for security reasons

After that, you can see your UPI ID in the ‘Profile’ section of this app.

12. Is it possible to bid for this initial public offering of OYO Hotels and Homes using a bank account that is not linked with the Angel One app?

Yes, it is possible to bid for this initial public offering of OYO Hotels and Homes using a bank account, which is not linked with the Angel One app. In such instances, the bank account you are applying through must be in your name.

13. Is it possible to apply for the public issue of OYO Hotels and Homes using a current account?

No, it is not possible to apply for the IPO of OYO Hotels and Homes or any other organisation, using a current account. The reason is, IPO applications made via such accounts are not accepted, it is better to use a savings account as an alternative for this purpose. Moreover, you can talk to any representative of your respective banks for additional details.

14. Is it possible to apply for the IPO of OYO Hotels and Homes using a Hindu Undivided Family or HUF account?

No, it is not possible to apply for the public offering of OYO Hotels and Homes through a Hindu Undivided Family account. Alternatively, if you apply for any IPO via the ASBA process, in such cases, you can take the help of this account.

15. Is it possible to apply for the public issue of OYO Hotels and Homes through my minor daughter’s account?

No, it is not possible to apply for the public offering of the OYO Hotels and Homes or any other company through your minor daughter’s account and using the Angel One platform. On the contrary, a minor can apply for any public issue using the ASBA process.

16. Can NRIs use the Angel One app to apply for this IPO of OYO Hotels and Homes?

No, NRIs cannot use the Angel One app to apply for the public issue of OYO Hotels and Homes. Nevertheless, they can always take assistance of the ASBA or Application Supported by Blocked Amount process extended by different banks to bid for any public issue of their choice.

17. Do I need to pay any extra charges to apply for this public issue of OYO Hotels and Homes using the Angel One platform?

No, you need not to bear any extra charges to bid for this public issue of OYO Hotels and Homes using the Angel One platform.

18. Can I submit more than one bid for a public issue using a single PAN?

No, you cannot submit multiple bids for a public issue using one PAN. The reason being, in such instances, IPO applications get rejected as per the existing rules. Therefore, you will fail to get an allotment for this public offering of OYO Hotels and Homes or any other firm.

19. What is a cut-off price? Can I bid for an initial public offering at this price?

A cut-off price is a price point at which the equity shares of OYO Hotels and Homes or of other companies get listed on the share market. This is a pre-set price and is primarily decided during the allotment stage of an IPO. Moreover, if you submit a bid at this price, it suggests that you are willing to apply for the public issue of OYO Hotels and Homes at this price point.

Also, applying at a cut-off price improves your chances of receiving an IPO allotment.

20. Even after submitting the final application for the IPO of OYO Hotels and Homes, the required funds are not debited yet. What is the reason?

The reason for the IPO related funds not being debited even after submitting the bids is that banks do not release funds related to a public issue just after you submit a bid. Instead, they will block this amount momentarily, and once you receive an allotment, they will debit it.

On the other hand, if you do not receive an allotment or your UPI mandate expires, banks will release this amount.

21. How to ensure allotment for this OYO Hotels and Homes IPO?

It is not possible to guarantee allotment for any public issue, irrespective of the company you choose to apply for. In the event of an oversubscription, which is a common affair, the allocation of shares is done via a lottery system. So, it is not possible to provide any assurance in this regard.

A point to keep in mind here is that the Angel One platform only allows you to apply for an IPO, and it does not offer any guarantee regarding its allocation.

However, you can improve your odds by keeping the below-mentioned points in mind –

  • Applying at the cut-off price
  • Using a Demat Account linked with your PAN
  • Confirm that your bank account and UPI ID are linked through a single PAN, and failing to keep that can lead to rejection. For instance, person X has applied for the OYO Hotels and Homes IPO via his Demat Account but person Y’s UPI ID. In such cases, the application can get rejected due to –
  • Person Y’s UPI ID is not linked with X’s PAN

Person X’s Demat account is not linked with Y’s bank account

22. Can I alter my IPO bid for the public issue of OYO Hotels and Homes after submitting the application?

Yes, you can change the IPO bid of this OYO Hotels and Homes even after submitting its final application. Here, you have the opportunity to change your UPI ID and the lot size.

Nonetheless, a point to remember here is that, if you make any changes following the approval of your UPI mandate request, it will be then regarded as a new bid. Therefore, banks will block your bid amount beside your existing one. Additionally, you will get a new UPI mandate request like before.

23. What are the probable reasons behind the rejection of my IPO application for OYO Hotels and Homes?

Possible reasons behind the rejection of your IPO application for OYO Hotels and Homes are –

  • Failing to ensure that your Demat account, UPI ID, and bank account are connected with the same PAN
  • Entering an incorrect UPI PIN while approving the mandate

For example, if you use your Demat account to apply for this public issue and use your friend’s UPI ID to make payment. In that case, your application can get rejected –

  • If your PAN and your friend’s UPI ID are not connected

If your Demat account is not linked with your friend’s bank account

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