Oyo DRHP takeaways - Everything you need to know!

Do retweet and help this thread reach more investors :)

#IPOwithJST #oyo
1/n -

About Oyo -

- First of all, Oyo is a foreign-owned and controlled company.
- OYO gets hotels and homeowners to list their properties on the platform. They market such properties on the OYO app and their ecosystem
- They help book hotels and vacation homes.
2/n -

- OYO was co-founded by Ritesh Agarwal in May 2013. Since then, Oyo has raised 16,000 crores in VC money and Rs 5,000 crore in debt, totaling 21000 crores!
- Early investors, VCs such as Sequoia Capital and Lightspeed, have already cashed out, making cool returns.
3/n -

- SoftBank Vision (Cayman) Ltd, with a 46.62% stake is the “investor promoter” for the purpose of the IPO.
- Ritesh Agarwal holds 8.21% in his name and 24.95% through RA Hospitality Holdings, an entity in the Cayman Islands.
4/n -

- What does Oyo Actually do? Don't let the Img 1 confuse you, in simple words, it is an aggregator that lets you book hotels and vacation homes.
- Google Trends for Aggregators
- As of FY21, Oyo had 157,344 storefronts across 35+ countries listed on their platform. ImageImageImageImage
5/n -

- As of Sept 2021, they had the largest footprint in terms of hotel storefronts in India and SEA and the 2nd largest footprint in Europe. (Core Growth Markets.)

- 9.2 million OYO Wizard members as of FY21 (Loyalty program) ImageImageImage
6/n -

- Issue Details

Fresh issue of Rs 7000 Cr, OFS of 1430 Cr
Pre IPO of 1400 cr may be done

- Objects of the issue

2441 Cr debt payment
2900 Cr organic and inorganic opportunities funding

- Selling Shareholders Image
7/n -

Oyo Townhouse Restructuring - A 'Costly' solution

- In 2020, they went on a big restructuring exercise to shut down their self-operated Townhouse business.
- The company spent a lot of its time, money, and energy in building this.
8/n -

- model = hotels would be completely managed by their owners or franchisees of the Oyo brand.
- Back to restructuring, They removed 1000s of employees. 407 cr was spent on this covering termination costs of contracts, severance pay, inventory, + other asset write-downs
8/n -

Let's see how Oyo recognizes revenue -

It takes Gross booking revenue as Revenue in the hotel segment

Ideally, it should note commissions as revenue as -

GBV = Oyo commission + patron’s commission (hotel owner) + direct/indirect costs

Shocking! Image
9/n

Surprising that it notes commissions as revenue in the other 2 segments.

Also in segment breakup, it just gives India revenue and outside India revenue.

This doesn't tell much!

Note - Only 25% of revenue comes from India ImageImage
10/n

Since May 2013, Oyo has raised Rs 21000 Cr (16000 cr of VC money and 5000 Cr in debt)

Losses (Rs Cr) -

FY19 - 2525
FY20 - 12800
FY21 - 3929

Has 95 subsidiaries (109 total, 95 operational) and 41 (52 total, 41 operational) joint ventures

Amusing! ImageImageImage
11/n

Financials (Rs Cr)

Revenue -

FY19 - 6518
FY20 - 13413
FY21 - 4157

Losses -

FY19 - 2525
FY20 - 12800
FY21 - 3929

Losses reduced in FY21 as other expenses pulled back (like every other Tech IPO company did, Img 2)

No cash flows, nothing else worth talking about. ImageImage
12/n

- Also, there were exceptional items, which totaled Rs 1,644 Cr in FY20 and Rs 1001 Cr in Fy21.

- Rs 2644 Cr of exceptional items in just 2 years – to put that in perspective their revenue was 4157 cr in FY21, 50% of revenue as exceptional costs! Image
13/n

Conclusion -

The DRHP was very ambiguous and I had to rely on outside sources to research!

What will happen with Oyo in the mid to long-term future is something that no one knows!

Valuations have no meaning here, so let's chuck that!

Thanks for reading!
Also , a fun fact on Oyo -



Stay tuned for more :)

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Aditya Kondawar

Aditya Kondawar Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @aditya_kondawar

13 Oct
Policy Bazaar DRHP Takeaways!

KYI - Know Your IPO ✅

Let's understand everything about this online insurance broking company in the thread below 👇

Do Retweet and help us educate more investors :)
1/n

- The story goes - Yashish Dahiya’s father was cheated by a few insurance brokers. So Dahiya junior went on a crusade and co-founded PB for consumers to compare insurance policies & purchase a policy that makes sense for them. (Src – @MorningContext )
2/n

About Policybazaar (PB) or PB Fintech –

- Incorporated as “ETECHACES Marketing and Consulting Private Limited” at New Delhi on June 4, 2008.
- Professionally managed company with no identifiable promoter
Read 30 tweets
28 Sep
Manyavar DRHP Takeaways!

KYI - Know Your IPO ✅

It is not just a clothing company!

It is a SaaS company (Stitching or Sherwani as a service) 😝😝

Do Retweet as it will help us educate more investors!
1/n

About Manyavar -

- The largest company in India in the men’s Indian wedding and celebration wear segment
- Crisil – “‘Manyavar’ brand is a category leader in the branded Indian wedding and celebration wear market with a pan-India presence through its multi-channel network”
2/n

- For a large portion of attires and accessories, third-party manufacturers (“jobbers”) are used
- Jobbers perform different stages of the manufacturing process, including cutting, embroidery, stitching, and finishing
Read 19 tweets
27 Sep
Ixigo DRHP Takeaways!

KYI - Know Your IPO ✅

Let's understand everything about this OTA (online travel aggregator) in the thread below

Do Retweet and help us educate more investors :)
1/n

About Ixigo -

- History
- Largest Indian OTA in online train bookings
- ixigo trains + ConfirmTkt collectively are the leading B2C distribution platforms for IRCTC with a 42% market share
- AbhiBus, was the second-largest Indian bus-ticketing OTA with a 10% market share
2/n

- Third largest flight OTA in India with a market share of 12% in online air bookings
- They say "we are the leading travel ecosystem for the ‘next billion users, with our focus on localized content and app features that aim at solving problems of travelers”
Read 21 tweets
17 Sep
Paras Defence IPO Review -

Let's understand everything about the business and its IPO!

Retweet for a wider reach and help us educate more investors!

#IPOwithJST #Defence
1/

Issue Details

Dates - Sept 21 to 23
Price Band - Rs 165 - 175
Size - 171 Cr (30 cr ofs + 141 cr +34 cr Pre ipo already done)
Quotas – QIB 50% | NII 15% | RII 35%
MCap post listing – 683 Cr
(3.1 Cr existing shares + 80L new shares from fresh issue)
2/

Pre IPO Information - (Img 1)

Objects of Issue - (Details in Img 2)

- Purchase of machinery and equipment
- Funding incremental working capital
- Repayment or prepayment of all or a portion of certain borrowings/outstanding loan facilities
- General corporate purposes
Read 17 tweets
11 Sep
Sansera Engineering IPO - Everything you need to know!

A Thread 🧵👇

Do hit the retweet and help us educate more investors :)

#IPOwithJST
1/n

About the Company -

- Manufactures complex and critical precision engineered components

2 Segments -

- Automotive - 2W, PV, and CVs (88.5% of total revenue)
- Non-Automotive - aerospace, off-road, agriculture, engineering, and capital goods (11.5% of total revenue)
2/n

Products -

Automotive - Connecting rods, rocker arm, crankshaft, gear shifter fork, etc that are critical for engine, transmission, suspension etc

Non-Automotive - range of precision components, supplying directly to OEMs in finished (forged and machined) condition
Read 11 tweets
13 Aug
The UNBELIEVABLE story of how Mr. Uday Kotak almost lost his life 🤯

Yeah, you read that right! He had slipped into a coma!

How one of India’s most well-known BFSI franchises would not have been born if a 10-minute delay would have happened 😯

@udaykotak
It was when Mr. Uday Kotak was 20 years old in 1979 and he was playing cricket when the unthinkable happened

He flicked a shot between the covers and as he was mining between the wickets, a fielder flung the ball back to the stumps in order to get him run out
The ball hit him on the head and he collapsed (they used to play fast bowling under all kinds of conditions without any helmets and no regulations on bouncers)

He doesn't remember how all of it happened but the competitive spirit in him prevailed
Read 11 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

:(