OYO files revised IPO papers with SEBI

After filing preliminary initial public offering (IPO) papers in 2021, OYO Hotels' parent company Oravel Stays Ltd. has filed a revised draft red herring prospectus (DRHP) with market regulator SEBI.

OYO is reportedly working towards a public issue in the year 2023. The revised DRHP includes the consolidated financial information for the financial years ended March 31, 2021, March 31, 2020, and March 31, 2019, along with certain non-GAAP financial measures and key performance indicators.

The financials of the hotels aggregator, disclosed in the IPO filing addendum, show a reduction in losses for FY22 and as of Q1 FY23. OYO's FY21 loss stood ₹4,103 crore, while the loss attributable to equity shareholders as of March 31, 2022, was ₹2,140 crore. As of the first quarter ending June 30, 2022, the company's loss stood at ₹414 crore.

OYO's revenue from contracts with customers was ₹3,961.6 crore in FY 2021, which increased by 20.7% to ₹4,781.3 crore in fiscal 2022. For the three-month period ended June 30, 2022, OYO's revenue was ₹1,459.3 crore.

OYO's number of storefronts decreased slightly from 1,58,176 as of March 31, 2020, to 1,57,344 as of March 31, 2021, on COVID-19 curbs. They increased from 1,57,344 as of March 31, 2021, to 1,68,639 as of March 31, 2022, on growth in the homes and hotels business, primarily on a recovery in travel demand.

The storefronts dipped from 1,68,639 on March 31, 2022, to 1,68,012 on June 30, 2022, on measures taken by OYO to improve GBV (gross booking value) per storefront per month, including temporarily pausing operations at storefronts operating at subpar GBV per storefront per month levels, says the company. In Q1 FY23, OYO's gross booking value per hotel grew 47% to ₹3.25 lakh as compared to ₹2.21 lakh for FY22 on the removal of travel curbs.

In February this year, OYO acquired Direct Booker D.o.o, a vacation homes rental company focusing on European homes. OYO says the growth in its home business was primarily driven by organic growth in the number of storefronts.

OYO's expenses for fiscal 2021, fiscal 2022 and the three-month period ended June 30, 2022, were ₹22,800 crore, ₹6,937 crore, ₹6,984 crore and ₹1,910 crore, respectively, showing a consistent decline. The employee benefits expense also dipped from ₹47.6 crore in FY20 to ₹17.4 crore in FY21 but reported a marginal rise in FY22 at ₹18 crore.

OYO's marketing and promotion expenses also dipped for the past three years, with ₹542 crore in FY21, ₹690 crore in FY22, and ₹209 core as of Q1 FY23. Liabilities as of June 30, 2022, stood at ₹7,312 crore. They were at ₹1,994 crore as of FY22, and ₹3,426 crore as of FY21.

OYO had filed initial papers with SEBI to raise about $1.1 billion in 2021, but it shelved the plans to launch the IPO as a majority of new-age tech IPOs failed to impress investors, and amid global downturn across markets.

The issue comprised a fresh issue of equity shares aggregating up to ₹7,000 crore and an offer for sale (OFS) of ₹1,430 crore. OYO's early backer SoftBank Group Corp holds a 47% stake in the company, while about one-third of the company is owned by founder Ritesh Agarwal.