Ahead of its crucial initial public offering (IPO), Oravel Stays, which operates hospitality firm Oyo Hotels & Homes, has announced to increase its authorised share capital from Rs 1.17 crore to Rs 901 crore.
The company during an extraordinary general meeting of Oravel Stays on September 1 approved the resolution to increase its authorised share capital, according to a company’s filing with the Registrar of Companies (RoC).
The increase is from the existing Rs 1,17,80,010 to Rs 9,01,13,59,300. The authorised capital is the maximum amount of capital that a company is allowed to issue at any point in time. Oyo is likely to file its draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI) in the next few months. The company looks to raise $1.2-1.5 billion at a valuation of $14-16 billion.
Internally, the company has set a timeline of September for filing its IPO papers and wants to be a public company before the calendar year ends. The company has already initiated talks with multiple bankers including JPMorgan, Citi,The company during an extraordinary general meeting of Oravel Stays on September 1 approved the resolution to increase its authorised share capital and Kotak Mahindra Capital to manage its public issue.
In a precursor to the IPO, Oyo in August raised fresh capital from Microsoft Corp by way of equity shares and compulsory convertible cumulative preference shares on a private placement basis. In July, the company raised $660 million through the Term B loan route from global institutional investors, including Fidelity Investments, to refinance and simplify its existing borrowings.