Current stock market(Share Market)The impact of the volatility of the hospitality and travel sector company OYO’s IPO (OYO IPO) Being seen on. The company is now planning to launch its IPO after September. The company has approached market regulator SEBI in this regard(Securities and Exchange Board of India – SEBI)Has written a letter requesting to update his application. The company had applied for an IPO with SEBI in October last year. According to sources, keeping in view the market conditions, the company is now planning to launch the issue with a lower valuation than before. Earlier the plan was for a valuation of 11 billion but now the company is ready for a valuation of -8 7-8 billion.
According to the source, market conditions are expected to start improving after September, which could lead to a good response to the issue. Presumably in a situation where the recovery in business is still ongoing. The company believes that recovery figures should be achieved first and then put in front of investors. According to PTI, the company did not respond when contacted.
Concerns about the current state of the market
Sources said that sentiment among the people has further deteriorated after seeing the recent share price situation of the listed company. In this case, the best way to win the trust of investors is to use the company’s performance. The company is currently seeing good growth in its business. In that case, Oyo could wait another quarter. According to a document filed by the company, Oyo had incurred a loss of Rs 1744 crore in FY2021.
As per the company’s proposed plan, Rs. 7000 crore new shares will be issued and Rs. 1430 crore sales offer. However, it is now believed that the offer for sale will not come. The company will be valued at around થી 7 to 8 8 billion. Which is lower than the previous estimate of 11 billion. Earlier, when Oyo raised 5 million from Microsoft, the deal was valued at 9.6 billion.
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