OYO to file for an IPO next week, wanting to raise around $1.2 billion

As per the regulatory filing, the parent company of OYO, Oravel Stays, confirmed the conversion of OYO from a private limited company to a public limited company last week.

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The hospitality firm OYO planning to raise around $1 billion to $1.2 billion through the Initial Public Offering (IPO). The company is expected to file the Draft Red herring Prospectus (DRHP) with the Security Exchange of India (SEBI) next week. 

To manage the public issue, OYO has appointed investment banks like Citi, Kotak, Mahindra Capital and JP Morgan. As per the regulatory filing, the parent company of OYO, Oravel Stays, confirmed the conversion of OYO from a private limited company to a public limited company last week. Previously, the board of Oravel Stays approved Rs. 1.17 crore to Rs. 901 crore increase in the authorised share capital of the company.

The company said in a filing to the Registrar of Companies that Microsoft has invested nearly $5 million which is about Rs. 37 crore in OYO through the issuance of equity shares and compulsory convertible cumulative preference shares.