OYO Hotels and Homes is reportedly considering reducing the size of its initial public offering (IPO) by two-thirds amid the current market volatility, according to sources familiar with the matter. The company was earlier planning to raise $1.2 billion through the public issue, which was expected to be one of the largest IPOs in India.

The sources have stated that the OYO management is now contemplating reducing the IPO size to around $400-500 million, as the market conditions have become volatile and unpredictable in recent weeks. The move is aimed at avoiding a potential risk of the company failing to raise the required capital and ending up with a lower valuation in the market.

OYO’s IPO was initially scheduled to launch in late 2021, but the company postponed it due to concerns over the market situation and the ongoing Covid-19 pandemic. The company had been eyeing a valuation of around $12 billion through the public issue, which would have made it one of the most valuable Indian startups.

However, the recent market volatility and the increasing uncertainty have forced the company to rethink its IPO plans. The management is now exploring options to cut down the size of the public issue and raise the required capital through alternative means, such as private equity investments or debt financing.

The decision to slash the IPO size by two-thirds is a reflection of the current market sentiment and the challenges faced by companies in raising capital through public issues. The recent IPOs of some of the biggest Indian startups, including Paytm, Zomato, and Policybazaar, have faced significant market volatility and tepid investor response, leading to subdued market debuts.

OYO, which operates in more than 80 countries, has faced its share of challenges in recent years, including management turmoil, Covid-19-related disruptions, and regulatory hurdles. The company is now hoping to stabilize its operations and strengthen its financial position through the IPO, but the decision to reduce the size of the public issue is likely to impact its valuation and growth prospects.

OYO Hotels and Homes is reportedly considering reducing the size of its initial public offering (IPO) by two-thirds amid the current market volatility, according to sources familiar with the matter. The company was earlier planning to raise $1.2 billion through the public issue, which was expected to be one of the largest IPOs in India.

The sources have stated that the OYO management is now contemplating reducing the IPO size to around $400-500 million, as the market conditions have become volatile and unpredictable in recent weeks. The move is aimed at avoiding a potential risk of the company failing to raise the required capital and ending up with a lower valuation in the market.

OYO’s IPO was initially scheduled to launch in late 2021, but the company postponed it due to concerns over the market situation and the ongoing Covid-19 pandemic. The company had been eyeing a valuation of around $12 billion through the public issue, which would have made it one of the most valuable Indian startups.

However, the recent market volatility and the increasing uncertainty have forced the company to rethink its IPO plans. The management is now exploring options to cut down the size of the public issue and raise the required capital through alternative means, such as private equity investments or debt financing.

The decision to slash the IPO size by two-thirds is a reflection of the current market sentiment and the challenges faced by companies in raising capital through public issues. The recent IPOs of some of the biggest Indian startups, including Paytm, Zomato, and Policybazaar, have faced significant market volatility and tepid investor response, leading to subdued market debuts.

OYO, which operates in more than 80 countries, has faced its share of challenges in recent years, including management turmoil, Covid-19-related disruptions, and regulatory hurdles. The company is now hoping to stabilize its operations and strengthen its financial position through the IPO, but the decision to reduce the size of the public issue is likely to impact its valuation and growth prospects.