OYO is launching for IPO after major start-ups in India like Zomato, Nykaa, PolicyBazaar went for an Initial Public Offering. This well-known Oyo Hotels & Rooms is launching for IPO in the country is backed by SoftBank and has set September as its deadline to file the IPO with SEBI – The Securities and Exchange Board of India.

Oyo wants to be a public company before this year ends. The company has approached JP Morgan, Kotak Mahindra Capital, and Citi Bank. They have a value of more than $1.2 billion. This has helped them to launch an initial public offering in India.

The IPO plans follow Zomato’s big opening and are happening at a time when the Indian public market seems to be bullish.

IPO is filed when the company realizes that it has entered a stage where it can completely abide by SEC regulations. When the company goes for IPO, it will advertise the offering to the public.

Usually, when a company is launching for IPO the existing investors will continue to own 70 to 80 percent of the company. Then the public is sold shares of the company mostly ranging from 20 or 30 percent.

Oyo is seeing good business since the vaccination drive has increased and COVID-19 cases have decreased after being impacted by the pandemic.

Around 43% of Oyo’s revenue comes from India and Southeast Asia while 28% comes from Europe. The rest from other global markets reported Economic Times.

Business Today reported that even the IT giant Microsoft, reportedly, is in talks to invest in the company at a valuation of $9 billion. The deal between Microsoft and OYO could be declared soon. In case the deal materializes, OYO might also utilize Microsoft’s cloud services. Therefore, as OYO is launching for IPO, one can expect a lot of investments.

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