Oyo in Discussion to Secure Rs1000 Crores from Family Offices

Oyo

According to insiders, the hospitality chain Oyo is in talks with family offices of famous Indian business executives and stock market specialists to raise approximately Rs 1,000 crore.
Potential investors include corporate strategy advisor Anand Jain, Mankind Pharma promoters Ramesh and Rajeev Juneja, and Utpal Sheth, a close friend of late market expert Rakesh Jhunjhunwala, according to the newspaper.

After withdrawing its application for an initial public offering (IPO) last month, Oyo plans to hold an extraordinary general meeting (EGM) on Tuesday to ratify the funding after boosting its authorized share capital.

The proposed financing round is estimated to value the company at roughly $2.5 billion, a 72% drop from its peak valuation of $9 billion in 2021, making the offer a major down round.
The SoftBank Group-backed company is also nearing the end of negotiations with Malaysia’s sovereign wealth fund, Khazanah Nasional, which is currently negotiating particular rights before finalizing the agreement, according to the article.

According to the newspaper, a source stated that “the order book from family offices is now approximately Rs 1,000 crore.” Oyo aims to offer a part to Khazanah Nasional, whose standing as a sovereign wealth fund adds credibility to the capital table.”

The article further stated that the company will consider approving an initial funding of roughly Rs 500 crore. According to a source, the complete finance, which includes contributions from family offices and institutional investors, is likely to be finalized by the end of the month.
Most cheques will range between Rs 15 crore and Rs 30 crore on average, though some may be larger, and investors who participate at this valuation can still expect significant gains if an IPO is priced higher, according to a source cited in the paper.

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