Composite insurer based in the Middle East Qatar Insurance Company (QIC) and a group of buyers of which family offices would have bought Rs 230 crore secondary shares of a hotel company linked to the IPO. The transaction values the company at nearly $9.6 billion, said sources who confirmed the news.
The transaction, which took place at the end of 2021, was executed at a share value of around Rs 110 per share. These included 1.43 crore equity shares as well as 2,500 preferred shares. The shares were mostly unloaded by OYO Employee Welfare Trust, which holds them under the company‘s employee stock ownership plan (ESOP).
An email sent to the company with questions did not elicit a response until the time of the article’s publication.
OYO, headquartered in Gurugram, is supported by SoftBank Vision Fund, Sequoia Capital, Lightspeed Ventures, Airbnb and most recently Microsoft. It was valued at $9.6 billion in August 2021 when it raised $5 million from Microsoft.
In September 2021, OYO had increased its ESOP pool of 41% with the addition of 20 crores of shares.
Oravel Stays, the parent company of OYO, filed its Draft Red Herring Prospectus (DRHP) with market regulator SEBI in September 2021. It plans to raise Rs 8,430 crores from public tenders, including a primary issue of Rs 7,000 crores.
As part of the IPO, SoftBank which owns more than 46% in the company, will sell shares of a value Rs 1,328.53 crore, while the founder Ritesh Agarwal, who owns nearly 33% of the capital directly and through its holding company RA Hospitality Holdings, will not sell any shares in the IPO.