OYO, officially known as Oravel Stays Ltd., is a global platform that has revolutionized the hospitality industry by empowering entrepreneurs and small businesses with hotels and homes through full-stack technology. This innovative approach not only increases earnings but also streamlines operations, making it a preferred choice for many in the hospitality sector. As OYO prepares for its IPO, the interest in its share price, often referred to as the OYO Share Price or OYO Rooms Share Price, is growing among potential investors and market watchers.
Oravel Stays Ltd. IPO Overview
The much-anticipated OYO IPO has created a buzz in the market, with investors eagerly awaiting the official release of its price band and issue dates. As per the Draft Red Herring Prospectus (DRHP) filed with SEBI, the issue size for Oravel Stays Ltd. is set at a massive ₹8430 crore. This includes a fresh issue of ₹7000 crore and an Offer for Sale (OFS) of ₹1430 crore. However, the exact price band for the OYO IPO has not been issued yet, leaving investors to speculate on the potential valuation and the eventual OYO Share Price at the time of listing.
Financials of Oravel Stays Ltd.
To understand the potential of the OYO Rooms Share Price, it’s essential to delve into the financials of Oravel Stays Ltd. The company has seen a roller-coaster ride in its financial performance over the years. In FY2023, the company reported net sales of ₹25.45 crore, a modest increase from ₹17.85 crore in FY2022. However, the company has consistently reported losses, with a net loss of ₹464.62 crore in FY2023, down from ₹667.82 crore in FY2022. The adjusted Earnings Per Share (EPS) for FY2023 stands at a negative ₹0.35.
Despite the losses, OYO has shown resilience in managing its cash flow, with operating cash flow improving to a negative ₹130.75 crore in FY2023 from a more significant negative ₹346.57 crore in FY2022. The company’s financing cash flow also remains positive, albeit with a sharp decline from ₹28.24 crore in FY2022 to ₹0.85 crore in FY2023.
OYO’s Assets and Liabilities
OYO’s balance sheet reveals a significant strength in its investments, which stood at ₹14,285.91 crore in FY2023, up from ₹14,156.48 crore in FY2022. The company’s current assets, however, have decreased to ₹832.48 crore in FY2023 from ₹971.56 crore in FY2022, indicating a potential area of concern for short-term liquidity. On the liabilities side, OYO has managed to keep its borrowings at zero, which is a positive sign, but the total liabilities have marginally increased to ₹15,488.55 crore in FY2023.
Anticipating the OYO Share Price
As the IPO date approaches, the anticipation around the OYO Share Price is palpable. Investors are keen to see how the market will value Oravel Stays Ltd., given its global presence and the innovative solutions it offers in the hospitality industry. The final OYO Rooms Share Price will be closely watched, as it will set the tone for OYO’s market performance post-IPO.
In conclusion, while OYO’s financials show a mixed bag of progress and challenges, the company’s robust asset base, innovative approach, and market presence make it a strong contender in the stock market. The upcoming IPO will be a significant milestone for Oravel Stays Ltd., and the eventual OYO Share Price will be a key indicator of investor confidence in this hospitality giant. Check out stockify to buy unlisted shares.