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Founder <keyword id="20198157" type="General" weightage="20" keywordseo="Ritesh-Agarwal" source="keywords">Ritesh Agarwal</keyword> has invested Rs 830 crore through his Singapore-based entity Patient Capital in <keyword id="19901637" type="General" weightage="20" keywordseo="OYO" source="keywords">OYO</keyword>'s latest <keyword id="20080855" type="General" weightage="20" keywordseo="funding-round" source="keywords">funding round</keyword> -- wherein the <keyword id="21745043" type="General" weightage="20" keywordseo="travel-tech-platform" source="keywords">travel tech platform</keyword> raised Rs 1,457 crore, sources said. Post the equity dilution in the <keyword id="22756111" type="General" weightage="20" keywordseo="Series-G-funding" source="keywords">Series G funding</keyword>, Agarwal's holdings will increase from 29.97 per cent earlier, to 32.57 per cent post the investment, sources told PTI. According to sources close to the transaction, "Ritesh has invested to protect his ownership dilution in OYO as well as a signal of confidence in the company's prospects. The investment is backed by Singapore-based family offices." <keyword id="20517346" type="General" weightage="20" keywordseo="Oravel-Stays-Ltd" source="keywords" meta.keywordsubtype="org" meta.entityname="Oravel Stays Ltd" meta.hostid="261" meta.entityid="Oravel Stays Ltd">Oravel Stays Ltd</keyword>, the parent company of OYO, has raised Rs 1,457 crore from a consortium of investors in the latest funding round. The additional equity issuance was approved by 99.99 per cent shareholders in an Extraordinary General Meeting (EGM) held on August 8. The additional fundraise values the company at USD 2.4 billion, as the first Series G tranche issued to InCred in July. The investment is being made through Compulsory Convertible Cumulative Preference Shares, each priced at Rs 29, consistent with the valuation of the recent raise in Series G. The capital will be used to support OYO's growth and its global expansion plans, sources said.

Founder Ritesh Agarwal invests Rs 830 crore in OYO's latest funding round; Platform raises Rs 1,457 crore

<keyword id="125045" type="General" weightage="50" keywordseo="fitch-ratings" source="Orion">Fitch Ratings</keyword> on Wednesday said it has revised the outlook on <keyword id="2981241" type="General" weightage="50" keywordseo="oravel-stays" source="Orion">Oravel Stays</keyword> Ltd's (<keyword id="2808667" type="General" weightage="100" keywordseo="oyo" source="Orion">OYO</keyword>) long-term foreign- and local-currency issuer default ratings to 'positive' from 'stable', while affirming the ratings at 'B-'. The ratings agency also said it has affirmed the rating on the USD 660-million senior secured term loan facility due 2026, issued by OYO's fully owned subsidiary, Oravel Stays Singapore Pte Limited, at 'B-'. "The outlook revision reflects our view that OYO is on track to generate positive EBITDA and cash flow from operations (CFO) sustainably. This follows positive EBITDA in every quarter of the financial year ended March 2023 (FY23), which is the first year of profits since OYO's incorporation in 2012," <keyword id="82981" type="General" weightage="80" keywordseo="fitch" source="Orion">Fitch</keyword> Ratings said in a statement. It further said, "We expect significant growth in its EBITDA in FY24, led by an ongoing demand recovery in the travel and tourism industry, the company's stable gross margins, and reduction in operating costs." The rating reflects OYO's asset-light business model "that benefits from minimal capex needs, largely exclusive distribution rights, pricing control over storefront inventory, fixed revenue share and strong long-term growth potential", it added. "The business profile's strengths are mitigated by the sector's high competitive intensity and demand cyclicality. The rating also reflects OYO's adequate liquidity," Fitch said. The ongoing demand recovery in the industry is expected to drive revenue growth of over 20 per cent, it said, adding, "we also expect OYO's operating leverage to benefit from a sustained reduction in costs and drive high single-digit EBITDA margins in FY24." On improved cost structure, Fitch said, "We expect the cost-reduction measures OYO undertook in recent years to support its improving profitability in FY24. We believe such reductions will not affect growth, as it has increased its business development staff to prioritise storefront additions." The ratings agency also said it estimates that "OYO's unrestricted cash at FYE23 is sufficient to fund its Fitch-estimated free cash flow deficit of around USD 7 million and annual debt repayment of around USD 6 million in FY24". However, it said, "a greater cash burn than we expect could weaken OYO's liquidity. Any potential default of the debt outstanding at one of OYO's shareholding entities owned by the founder may be a reputational risk and affect OYO's operations, and we treat this as an event risk." SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/suvs-car-with-the-longest-waiting-period-in-india/slidelist/100649287.cms">Mahindra Thar, Tata Nexon and more: SUVs with the longest waiting period</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/centres-fiscal-deficit-for-2022-23-at-6-4-of-gdp-cga-data/articleshow/100649200.cms">Centre's fiscal deficit for 2022-23 at 6.4% of GDP: CGA data</a>

Fitch Ratings revises outlook on OYO's long-term issuer ratings to 'positive' from 'stable'

<keyword id="2981241" type="General" weightage="20" keywordseo="oravel-stays" source="Orion">Oravel Stays</keyword> Pvt Ltd, which operates hospitality firm <keyword id="2808667" type="General" weightage="20" keywordseo="oyo" source="Orion">OYO</keyword>, has approved an increase in the authorised share capital of the company from ₹1.17 crore to ₹901 crore, according to a regulatory filing by the hospitality firm. The development comes ahead of proposed initial public offering (IPO) by OYO, for which a draft red herring prospectus (DRHP) is likely to be filed in the next few months, sources in know of the matter told PTI. An extraordinary general meeting of Oravel Stays Pvt Ltd (OYO), on September 1, approved the resolution to increase its authorised share capital, as per a Registrar of Companies (RoC) filing by the company. Authorised capital is the maximum amount of capital that a company is allowed to issue at any point of time. The increase in the authorised share capital of the company is from the existing ₹1,17,80,010 to ₹9,01,13, 59,300, the company said in a regulatory filing. In a precursor to the IPO, OYO in August raised fresh capital from Microsoft at a post-money valuation of $9.6 billion. Tech giant Microsoft Corporation has invested nearly $5 million in OYO through the issuance of equity shares and compulsory convertible cumulative preference shares on a private placement basis by the latter, the hospitality chain had said in a regulatory filing. Earlier in July, it raised $660 million through the term B loan route from global institutional investors, including Fidelity Investments to refinance and simplify its existing borrowings. OYO has initiated discussion with investment banks like JP Morgan, Citi and Kotak Mahindra Capital to manage its $1.5 billion public issue slated to raise between $1.2-1.5 billion at a valuation range of $14 to 16 billion, sources said. Comments from the company could not be obtained at the time of filing the story. The company has moved away from minimum guarantee (MG) model seen up until 2019, to a revenue sharing model, and has shifted to an automated and simplified twice a week dues reconciliation with its hotel partners. OYO has earlier raised funding rounds from marquee global venture capital funds like Softbank, Sequoia, Lightspeed Venture Partners, Hero Corporate and leading global consumer tech companies like DiDi, Grab and Airbnb.

IPO-bound OYO increases authorised share capital to ₹901 crore

Softbank-backed <keyword id="19901637" type="General" weightage="20" keywordseo="OYO" source="keywords">OYO</keyword> is set to refile its much-awaited <keyword id="19898327" type="General" weightage="20" keywordseo="IPO" source="keywords">IPO</keyword> as the global travel tech player is close to finalising its refinancing plans to raise up to USD 450 million via sale of dollar bonds, sources said. JP Morgan is the likely lead banker for the refinancing through the sale of dollar bonds at an estimated interest rate of 9 to 10 per cent per annum, a source said. In preparation for the refinancing, OYO has already moved its application with markets regulator <keyword id="19901201" type="General" weightage="20" keywordseo="SEBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SEBI" meta.hostid="153" meta.entityid="SEBI">SEBI</keyword> to withdraw its current draft red herring prospectus (<keyword id="19914966" type="General" weightage="20" keywordseo="DRHP" source="keywords">DRHP</keyword>). The company intends to refile an updated version of the DRHP, after the bond issuance. Oravel Stays Ltd, OYO's parent company, had in November prepaid a significant chunk of its debt amounting to Rs 1,620 crore through a buyback process. The buyback involved repurchasing 30 per cent of its outstanding Term Loan B of USD 660 million. The move brought down its outstanding loan amount to around USD 450 million. A source closely involved in the company's IPO plans told PTI, "The refinancing will result in material changes to OYO's financial statements. Hence as per existing regulations, it will need to revise its filings with the regulator". "Since the decision for refinancing is at an advanced stage, it doesn't make sense to continue pursuing IPO approval with the current financials. So it's prudent to withdraw the current application," he added. The refinancing will extend the repayment timeline to five years -- versus the repayment of the remaining TLB due in 2026 -- the source said. The bond issuance would significantly lower the current effective interest rate of 14 per cent on its existing USD 450 million Term Loan B (TLB) facility. "The refinancing is expected to result in annual interest savings of USD 8-10 million (Rs 66.4-83 crore) in the first year, after accounting for the costs associated with the bond issuance. The company anticipates annual savings of USD 15-17 million (Rs 124.5 -141.1 crore) thereafter, almost all of which would get added to its net profits. Post the debt refinancing, the company is open to contemplating an equity round, to reaffirm investor confidence before a public listing to fortify its financial strength," the source said. In September 2021, OYO had filed preliminary documents with the Securities and Exchange Board of India (Sebi) for a Rs 8,430 crore IPO. The launching of the IPO was delayed due to the then volatile market conditions making the company prepare to settle for a lower valuation at around USD 4-6 billion instead of the USD 11 billion it was targeting initially. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/webstories/motorola-edge-50-fusion-vs-oneplus-nord-ce-4-price-specs-and-features-compared/slidelist/110197390.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/motorola-edge-50-fusion-vs-oneplus-nord-ce-4-price-specs-and-features-compared/slidelist/110197390.cms" target="_blank">Motorola Edge 50 Fusion vs OnePlus Nord CE 4 – price, specs and features compared</a><a href="https://www.businessinsider.in/tech/mobile/webstories/iqoo-z9x-5g-with-120hz-display-6000mah-launched-starting-at-12999/slidelist/110176453.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/iqoo-z9x-5g-with-120hz-display-6000mah-launched-starting-at-12999/slidelist/110176453.cms" target="_blank">iQOO Z9x 5G with 120Hz display, 6000mAh launched starting at ₹12,999</a><a href="https://www.businessinsider.in/india/news/woman-loses-54-lakh-in-work-from-home-scam-heres-what-it-is-and-how-to-protect-yourself/articleshow/110166963.cms" target="_blank"></a> <a href="https://www.businessinsider.in/india/news/woman-loses-54-lakh-in-work-from-home-scam-heres-what-it-is-and-how-to-protect-yourself/articleshow/110166963.cms" target="_blank">Woman loses ₹54 lakh in work-from-home scam! Here's what it is and how to protect yourself</a>

OYO withdraws DRHP, to refile IPO post refinancing: Sources

The Delhi High Court on Monday nixed a plea filed by hostel chain <keyword id="2232457" type="General" weightage="20" keywordseo="zostel" source="Orion">Zostel</keyword> (Zo Rooms) seeking to restrain OYO Hotels and Homes from proceeding with its initial public offering (IPO) process, claiming that the former has seven per cent shareholding in the tech hospitality major. Justice C. Hari Shankar dismissed the plea of Zostel, seeking an interim order to restrain or injunct OYO from modifying its shareholding structure or cap table including by way of an Initial Public Offering (IPO). The dispute between OYO and Zostel dates back to 2015 when they had begun negotiations for a merger but the talks fell through. This eventually led to the arbitration. The two companies were at loggerheads over the arbitration award. OYO's contention that the Arbitration Tribunal adjudicating the dispute between the two entities has granted no specific relief to Zostel in terms of receiving ownership in the hospitality major. This was a result of OYO calling off its acquisition of Zostel Rooms citing the inability to reach an outcome to identify potential value in the latter's business after due diligence. Zostel had said that its shareholders are entitled to seven per cent mirror-image shareholding in the OHHPL (Oyo Hotels and Homes Private Ltd) as per the terms of the scheme of demerger of OYO's (Oravel Stays Private Ltd) "Indian Business" into the OHHPL, approved by the NCLT Ahmedabad. So, any market offer should only follow the implementation of this scheme. Oyo also sought in the High Court a stay on an earlier order from a Supreme Court-appointed arbitrator who had said that Oyo was in breach of its agreement with smaller rival Zostel over the proposed acquisition. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/indian-stock-market-is-bummed-out-for-at-least-three-reasons-and-none-of-them-are-going-away-in-a-hurry/articleshow/89561390.cms">The market in India is bummed out for at least three reasons and none of them are going away in a hurry</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sbi-and-icici-bank-lost-over-10000-crore-to-abg-shipyard-bank-fraud/articleshow/89559899.cms">SBI and ICICI Bank investors pay the price for the nearly ₹10,000 crore lost to the biggest bank fraud ever in India</a>

Road to IPO for OYO Rooms is clear as Delhi HC rejects Zostel's plea that restrained the IPO

<keyword id="2808667" type="General" weightage="20" keywordseo="oyo" source="Orion">OYO</keyword>'s parent firm Oravel Stays has refuted all 'allegations' made by <keyword id="2232457" type="General" weightage="20" keywordseo="zostel" source="Orion">Zostel</keyword> Hospitality, which had requested the markets regulator Sebi to reject the draft red herring prospectus filed by OYO for its initial public offering. In a letter to the Securities and Exchange Board of India on October 11, 2021, Zostel had said "the IPO is non-maintainable as Oravel's capital structure is not final" and accordingly "Oravel's filing of the DRHP (Draft Red Herring Prospectus) in the circumstances, is illegal..." The DRHP is replete with material omissions and blatant misstatements, intended to mislead the public to invest in Oravel's shares without an appreciation of the risks involved, it had added. In a letter to Zostel, accessed by PTI, OYO said, "...we deny in toto all the allegations levelled by you against us in the Complaint. The Complaint is replete with patently false statements and self-serving half-truths, and is a deplorable attempt to adversely impact the proposed Offer and coerce the Company into granting Zostel's shareholders an entitlement to shareholding in the company that they failed to obtain in the arbitration proceedings between Zostel, its founders and shareholders and the company and the arbitral award dated March 6, 2021, issued by the sole arbitrator, Justice AM Ahmadi (Retd.)". The company has made adequate disclosures required under the applicable law in the DRHP filed with Sebi. No reasons or grounds, whatsoever, have been made out by you, warranting consideration of rejection of the DRHP or suspension of the proposed offer, it added. "The capital structure of the Company is firm and accurately reflected in the DRHP. As on date, there are no shares due to be issued to Zostel's shareholders as the Award does not direct issuance of the Company's shares to the shareholders of Zostel," the letter said. All outstanding litigation required to be disclosed in accordance with the ICDR Regulations and the materiality policy adopted by the board of directors of the company in relation to outstanding litigation, involving the company, its subsidiaries, its promoters and its directors have been disclosed in the DRHP, it added. Further, this matter has been disclosed in the section "Outstanding Litigation and Material Developments - Litigation involving our Company - Material litigation against our Company" of the DRHP. A risk factor in relation to the matter has also been disclosed in the DRHP, OYO said. "...the DRHP contains adequate disclosures of all pending litigations, in compliance with the disclosure obligations under the ICDR Regulations," it added. The DRHP or the proposed offer do not infringe upon or violate the terms of the Award or any judicial or quasi-judicial pronouncements. Adequate information and disclosures have been provided in the DRHP for the potential investors to make an informed decision in respect of investment in the equity shares and the proposed offer, OYO said. Comments from Zostel Hospitality Pvt Ltd could not be obtained at the time of filing the story. Zostel and OYO are involved in a legal battle over a deal between the two companies in 2015. SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/irctc-infosys-interglobe-aviation-and-other-trending-stocks-on-october-29/slidelist/87352424.cms" style="">IRCTC, Infosys, InterGlobe Aviation and other trending stocks on October 29</a> <a href="https://www.businessinsider.in/thelife/news/zerodha-founders-rakesh-jhunjhunwala-zohos-radha-vembu-akshay-kumar-and-more-donate-up-to-50-crore-in-fy21/slidelist/87340238.cms" style="">Zerodha founders, Rakesh Jhunjhunwala, Akshay Kumar and more donate up to ₹50 crore in FY21</a>

OYO writes to SEBI, denying all allegations raised by Zostel

<ul><li>OYO and <keyword id="2825269" type="PERSON" weightage="20" keywordseo="Zo-Rooms">Zo Rooms</keyword> have been in a legal tussle for over three years now.</li><li>The dispute was over the merger between OYO and Zo Hostels, where the latter said it was denied its 7% shareholding in Oravel Stays, the parent company of OYO.</li><li>The tribunal said that Zo Rooms’ parent <keyword id="2232457" type="PERSON" weightage="20" keywordseo="Zostel">Zostel</keyword> Hospitality was entitled to claim relief and costs in the case, but acknowledged that definitive agreements weren’t executed.</li></ul>After a three-year long battle, the legal verdict on OYO Hotels and Homes and Zo Hostels is out, but both companies continue to sing their own tunes. The dispute was over the merger between OYO and Zo Hostels, where the latter said it was denied its 7% shareholding in Oravel Stays Pvt. Ltd, the parent company of the Ritesh Agarwal-led OYO. The Arbitral Tribunal comprising former Chief Justice of India AM Ahmadi said that Zo Rooms’ parent Zostel Hospitality Pvt. Ltd was entitled to claim relief and costs in the case, but acknowledged that definitive agreements of the deal weren’t executed. Two sides of the same coin Zo Rooms, which was a hotel aggregator founded by Zostel founders, claimed victory in the case saying that the agreement between OYO and Zo was binding. “We welcome the judgement by the hon'ble tribunal. Beyond the monetary compensation, it was a fight for our rights and reputation. We are extremely relieved with the judgement that the arbitral tribunal has pronounced after diligently evaluating the merits and evidence produced by us over the last 3 years,” said Paavan Nanda, co-founder of Zostel, who led the process, in a statement. Nanda is also the co-founder of gaming platform WinZO. As per Zo, OYO now has to compensate the stakeholders of Zo for their 7% shares. “If the order from the arbitrator is to be given effect, allotment of 7% to ZO Rooms’ shareholders will make this outcome the biggest exit in the Indian startup ecosystem, surpassing the Snapdeal-Freecharge Deal of $400 Million back in 2015,” said Zo in a statement. However, OYO refuted the claims and is currently evaluating legal remedies to challenge the award. The hospitality firm, valued at $9 billion, said that even with the legal battle, Zo ‘continues to misrepresent and latch on to OYO’. OYO said that the arbitration hasn’t given any direction for issuance of shares as the definitive agreement was neither agreed upon nor consummated and therefore closing conditions were far from being achieved. “The Tribunal has ruled and categorically acknowledged that the definitive agreements, which are extremely important documents for any M&amp;A transaction, were neither finalised nor agreed upon,” read OYO’s statement. Here’s a look at the timeline of events 2015: OYO’s lead investor SoftBank in its annual report claims that the Ritesh Agarwal-led startup had acquired its rival Zo Rooms. September, 2016: Merger talks between the two companies fall through. 2017: OYO <a href="https://techcrunch.com/2017/10/26/oyo-zo-rooms-deal/">confirms</a> that it has ended all discussions in the matter and says, “we tried to identify potential value in their business but could not reach an outcome”. 2018: Zo Rooms takes OYO to court claiming ‘data theft’ while doing the due diligence during the acquisition talks. February, 2018: Gurugram court hands the ruling in favour of OYO. Zo Rooms <a href="https://www.techcircle.in/2018/02/26/court-quashes-zo-rooms-plea-against-oyo/">says</a> it doesn’t have the financial bandwidth to ‘incur prolonged legal costs’. However, soon after Zo approached the Supreme Court. October, 2018: Supreme Court appoints a three-judge bench to evaluate the matter. January, 2020: Zo Rooms once again files a plea over OYO’s restructuring of its board, says that the restructuring will hamper Zo’s claims of 7% stake in OYO. March, 2021: The tribunal said that Zo Rooms parent Zostel Hospitality was entitled to claim relief and costs in the case, however acknowledged that definitive agreements weren’t executed. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/bootstrapped-online-travel-aggregator-easemytrip-makes-its-way-to-the-public-markets/articleshow/81326200.cms">INTERVIEW: Bootstrapped online travel aggregator EaseMyTrip makes its way to the public markets</a>

You Searched For "Oravel Stays Ltd" and got 7 results

Founder Ritesh Agarwal invests Rs 830 crore in OYO's latest funding round; Platform raises Rs 1,457 crore

PTI

Fitch Ratings revises outlook on OYO's long-term issuer ratings to 'positive' from 'stable'

PTI

IPO-bound OYO increases authorised share capital to ₹901 crore

PTI

OYO withdraws DRHP, to refile IPO post refinancing: Sources

PTI

Road to IPO for OYO Rooms is clear as Delhi HC rejects Zostel's plea that restrained the IPO

IANS

OYO writes to SEBI, denying all allegations raised by Zostel

PTI

OYO vs Zo – Zostel claims victory while the Ritesh Agarwal-led firm says there’s still room to win

Sanchita Dash

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