Oyo hotels postpone the public subscription for the third time

Indian Hospitality Chain Oyo Hotels has postponed its first public offer (IPO) for the third time, following opposition from Softbank Group and amid the conditions of the volatile stock market, Bloomberg said.

This represents the attempt of the third company for the public since 2021, which is now likely to look forward to appearing for the first time early March with a targeted assessment of more than $ 7 billion.

Softbank, who holds a large share in OYO, which exceeds the founder of Ritesh Agarwal, which exceeds 30 %, urges the company to delay the public subscription until its profits improve.

The fund’s support is necessary to agree to the Board of Directors and attract investors, as it was advised not to sell in public subscription.

The company closely monitors its performance and the broader economic environment to determine the most suitable time for public subscription, according to an OYO spokesman.

Meanwhile, Softbank has declined to comment on this issue.

Agarwal was keen on the quick public subscription to fulfill the conditions associated with his 2.2 billion dollar loan, which was personal guaranteed by the founder of Softbank Masayoshi Son.

The first batch of loan was scheduled to be in December, but lenders may extend the payment date if OYO was inserted this year.

Despite the delay, Softbank may help extend the deadline for repayment of AGARWAL loans.

OYO spokesman explained that the financial arrangements for the founder are separate from the company and will not affect the public subscription schedule.

The final decision on the list will be taken by the Board of Directors, taking into account the interests of all shareholders.

The role of Softbank is complicated by SON’s personal participation in Agarwal’s money, which enabled OYO founder to secure billions of dollars to increase his share in the company.

This loan was restructured in 2022, with the first benefit of $ 383 million still hanging.

OYO, which achieved the first annual profit in the year ending in March 2024, expects a significant increase in profits to 6.2 billion rupees ($ 74 million) in the following year.

Once one of the most valuable companies in India, Oyo’s evaluation was affected by intense competition, although it returned to profitability.

In 2022, the OIYO evaluation fund reduced its books to $ 2.7 billion from $ 3.4 billion.

In a modern development, Owa She announced the next launch of a custom app For its distinguished and medium hotels to the hotels that the company serves in April 2025.

. Hotel Management NetworkThe brand owned by Globaldata.

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