ORAVEL STAYS LIMITED (OYO) | OYO SHARE PRICE & UPDATES

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Company Overview

Oravel Stays Limited (holding company of Oyo Rooms) is a leading Indian multinational hospitality company founded by Mr. Ritesh Agarwal in 2013. The company provides hotel rooms, long term and short term stay homes, guest houses to its customers. Furthermore, the company is also engaged in providing technical know-how and training in the field of operations, marketing, and management of hotels.

Starting from just 1 hotel in 2013 in Gurgaon, today, Oyo Rooms is now available in more than 800 cities, with more than 23,000 hotels, 10, 00,000 rooms, and 46,000 vacation homes, across more than 80 including India, Malaysia, UAE, Nepal, China, Brazil, Mexico, UK, Philippines, Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, the United States and more.

OYO Rooms hires 17,000 employees across the globe, including 8,000 employees in India and South Asia. Some of the world’s leading investors, including Sequoia Capital, Airbnb, Grab, Hero Enterprise, Softbank Vision Fund, Light speed Ventures have invested in the company.

In September, 2021, the company gone for 1:10 face value split of all of its equity and preference shares and then allotted 3,999 bonus shares for each equity share held, and the company changed the conversion ratio of preference shares to equity shares from 1:1 to 1: 4000 (issuance of 4000 new equity shares for each 1 share of preference shares held).

The registered office of the company is at Ground Floor-001, Mauryansh Elanza, Shyamal Cross Road, Nr. Parekh Hospital, Satellite, Ahmedabad 380015, Gujarat, India.

Leading Brands
  1. OYO Townhouse
  2. OYO Home
  3. OYO Vacation Homes
  4. Silver Key
  5. Capital O
  6. Palette
  7. Collection O
  8. OYO LIFE
  9. YO! HELP
Business Model of Oyo Rooms

Oyo Rooms follows an asset-light, technology-driven business model under which it does not own its hospitality real estate. Rather, it partners with hotels under revenue-sharing contracts and sells their rooms under its own brand name on its platform. Since 2017, it has shifted to the franchisee model from the hotel aggregation model under which its hotel partners now operate as franchise and pay commission to Oyo Rooms. Under its new business model, it partners with hotels, and gets them to follow certain basic service standards including flat screen TVs, free Wi-Fi, breakfast, 6-inch shower head, a beverage tray, spotless white bed linen, branded toiletries, and then list their rooms on its portal to sell them under its own brand, earning commission from their revenues. The company audits its hospitality standards frequently to maintain a quality experience for its customers.

Oyo Rooms Technology Stack

Oyo Rooms is using the following platforms and technologies for their business needs:

  • WordPress for content management.
  • AdElement, Facebook Ads, Google Ads for digital advertising.
  • Outbrain for native advertising.
  • Markup language- HTML5.
  • jQuery, Modernizer, Bootstrap.
  • Platforms- Android and iOS.
  • Microsoft UET, Google Analytics, Hotjar for traffic analytics.
  • Gmail for email service.
  • PHP for server-side.
  • JavaScript for client side.
  • Microsoft Azure.
Oyo Rooms Recent Funding Rounds

Capital RoundDateCapital Raised
Series F29- July-2021$5 million
Series F01-July-2021$5 million
Series FJan, 2021Rs 540 million
Series FDec, 2019$1.5 billion
Series EApril, 2019$ 75 million
Series EFeb, 2019$ 100 million
Series EDec, 2018$ 100 million
Series ESept, 2018$ 1 billion

Oyo Rooms Key People
  1. Ritesh Agarwal, Founder and CEO
  2. Abhinav Sinha, Global COO and Chief Product Officer
  3. Ankit Tandon, Global Chief Business Officer
  4. Rohit Kapoor, CEO, India & South-East Asia
  5. Ankit Mathuria, Chief Technology Officer

Oyo Rooms Key Investors 

Below are the key investors holding more than 1% of the Oyo Rooms shareholding on fully diluted basis:

Investor% of pre-offer share capital on fully-diluted basis
SVF India Holdings (Cayman) Limited46.62
RA Hospitality Holdings (Cayman)24.95
Ritesh Agarwal8.21
Dinesh Ramamurthi (Trustee of Oravel Employees Welfare Trust)5.4
Sequoia Capital India Investments IV3.24
Lightspeed Venture Partners IX, Mauritius2.74
A1 Holdings Inc.1.81
Star Virtue Investment Limited1.81
AirBnB Inc.1.36
Total96.14

(Source: DRHP)

SymbolOravel Stays Ltd.
Face Value (₹):1
ISIN:INE561T01021
DEMAT Status:NSDL
Lot Size:

Board of Directors

NameDesignationProfile
Ritesh AgarwalChairmanNA Final 1
Aditya GhoshNon-Executive DirectorNA Final 1
Bejul SomaiaIndependent DirectorNA Final 1
Troy Matthew AlsteadIndependent DirectorNA Final 1
William Steve AlbrechtIndependent DirectorNA Final 1
Deepa MalikIndependent DirectorNA Final 1

Key Business Highlights

  • Asset Light, Technology-Enabled & Scalable Business Model.
  • Diversified Business Presence in India, South-East Asia and Europe.
  • 2nd Largest Customer Loyalty Program Resulting in 68% Repeat Business.
  • Constantly Improving Gross Profit Margin from 9% in FY19 to 33% in FY21.

Ratio

RatioFY22FY21
Operating Margin-28%-84%
Net Profit Margin-40%-95%
Return on Eqyity -134%-144%
Debt-Equity3.231.15
Current Ratio1.571.09
Dividend Payout0%0%

Financial Highlights

Particulars30-06-2022 (Q1)2021-222020-212019-202018-19
Total Income (₹ Crores)150549054157134136521
PAT (₹ Crores)-414-1940-3945-13130-2333
EPS-0.58 (Not annualised)-3.14-5.62-21.02-3.85
Book Value per Share (₹)8.3510.861,87,851.184,42,177.547,00,275.90
Equity (₹ Crores)1,109.481,443.602742.386449.698728.66

During the year 2021-22 company made the following changes in its share capital:-

1) Equity Share Capital

  

As at 31st March 2021

27,674

 

Shares issued

9,797

 

Adjustment for sub-division of equity share

2,49,759

 

Bonus shares issued

1,32,19,57,848

 

Issue on conversion of 0.01% CCPS

50,00,000

 

2) Instruments entirely equity in nature

  

As at 31st March 2021

1,18,313

 

Adjustment for sub-division of equity share

10,65,537

 

Conversion of 0.01% CCPS into equity shares

-1,250

 

Financial Charts

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Historical Charts

Shareholding Pattern

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Peer Comparison

CompanyAnnual RevenuesValuation (based on last valuation round)
oyo$554 million (2020)$10 billion (Oct, 2021)
2 1$11.7 million (2019)$97 million (June, 2021)
3 1$9.68 million (2018)$97 million (Oct, 2020)
4 1$17 million (2021)$135 million (Oct, 2021)
5 1$163 million (2021)$2.8 billion (Oct, 2021)
6 1$287 million (2020) $905 million (Oct, 2021)

Media Updates

India’s Oyo seeks $1.2 billion in IPO, eyes $12 billion valuation

  • The seven-year-old startup, founded by 27-year-old Ritesh Agarwal, is planning to raise as much as $1.2 billion in primary and secondary sales in the IPO and is aiming for a valuation of over $12 billion, the people said requesting anonymity discussing private matters.
  • Like Zomato, and a handful of firms, including Paytm and PolicyBazaar, Oyo plans to list on Indian stock exchanges, one person said. Agarwal doesn’t plan to sell any stake at the IPO, the person added.
  • The firm, which counts SoftBank, Lightspeed Partners and Airbnb among its investors and was most recently valued at $9.6 billion, had about $780 million to $800 million in the bank as of three months ago (per Agarwal’s public comment at a recent conference) and raised $660 million in debt in July.

Read more: https://techcrunch.com/2021/09/22/indias-oyo-to-file-for-1-billion-ipo/

Frequently Asked Questions (FAQs) on OYO Unlisted Shares

The buying and selling of unlisted shares, and pre-IPO shares of any company is fully legal and valid.

The procedure to buy the Oyo unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. Once the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day. 

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved. 

The Oyo unlisted shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Oyo, please visit the stock page on our website: www.delistedstocks.in/current-offerings/oyo-hotels-homes/

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the Oyo unlisted shares. 

Before IPO, there is no restriction on sale and transfer of your Oyo unlisted shares. But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange. 

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR (Unique Transaction Reference) number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors. 

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange. 

Yes, NRI’s can also buy and sell Oyo unlisted shares just like domestic investors. But their investment is on a non-repatriable basis. 

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