Unicorn Oyo Hotels and Homes has roped in merchant banks and lead book managers for its domestic initial public offering (IPO) for which draft papers will be filed by mid-October, said three persons aware of discussions.
The company has roped in Kotak Mahindra Capital, Citigroup, ICICI Securities, Nomura and Bank of America as lead book managers, two of the persons confirmed on condition of anonymity.
Oyo is looking at a $1.2 billion IPO, the individuals confirmed. Of $1.2 billion, up to $250 million could be secondary share sale, one of the persons said adding that early-stage investors will likely make partial exits.
The company is expected to list by early next year. This comes at a time when several startups are aiming to list this year. Names include cosmetics retailing startup Nykaa, insurtech and lending platform Policybazaar, logistics major Delhivery and Noida-based digital payments firm Paytm.
Cab aggregator Ola Cabs and e-commerce marketplace Snapdeal are also in talks to list on Indian exchanges next year.
“While the securities regulator is warming up to the idea of Indian startups wanting to list on Indian exchanges, it may exercise caution towards some of the new-age platforms wanting to go public [...] Oyo is a popular and known brand among Indians, which may help garner interest amongst investors during the listing,” said one of the individuals quoted above.
“Oyo also continues to be plagued by hotel owners complaining about lost deposits, which might not ring well with public market investors. However, considering the bull run phase there is appetite for IPOs by new-age companies in the current market scenario,” the person added.
Oyo, which did not respond to queries till press time, counts Japanese conglomerate SoftBank as one of its largest external investors owning almost 46% stake in the hospitality major.
Other backers include Lightspeed Venture Partners, Airbnb, Grab, Didi and Chuxing.
Oyo also raised debt funding worth $660 million in July this year from global institutional investors including Fidelity Investments. It was last valued at $9.6 billion in August this year after tech giant Microsoft Corporation invested nearly $5 million (about Rs 37 crore) in the company.