InvestorQ : Why is OYO transforming itself into a public limited company?
Dhwani Mehta made post

Why is OYO transforming itself into a public limited company?

Answer
image
Dilmini Mercia answered.
2 days ago
Follow

This is a statutory requirement before the company goes for its proposed IPO later this year. As a result, the parent company of OYO, Oravel, has announced plans to convert itself into a public limited company ahead of its proposed initial public offer. The application for the change of status from a private limited to public limited company and accordingly the name change request has already been filed with the Registrar or Companies or ROC.

This conversion to public limited status is mandatory before it can come out with the public issue. Meanwhile, the board of the parent company of OYO has approved the increase in authorised share capital of the company from Rs.1.17 crore to Rs.901 crore ahead of the IPO. OYO will be filing the draft red herring prospectus or DRHP by November this year. The proposed IPO is expected to be of Rs.11,000 crore at indicative valuations of $16 billion.

9 Views