Is the OYO IPO likely to be put off for the time being?

For all practical purposes, it does look like the OYO IPO has been put up. If you combine the weak trends in digital market places and the pressure on contact intensive sectors, the reasons are not far to seek. Now, OYO has written to SEBI for consent to file updated financials including the latest and adjusted financial data. OYO apparently plans to launch the IPO after September 2022, but it does look like the plans for this year are off. Last year, OYO had filed for Rs8,430 crore IPO in October 2021 with indicative valuation of $11 billion.

Quite a few things have changed. Now it does look like OYO is reconciled to a smaller issue size and also lower valuations in the vicinity of $8 billion rather than the originally anticipated $11 billion. Recent digital listings and also the mega LIC listing have been rather disappointing and that is likely to put pressure on valuations. OYO is sensitive to that shift in mindset of investors. Oyo had incurred a net loss of Rs1,741 crore in FY21. The plan is that OYO may only do a fresh issue of shares and postpone the OFS idea for now.