Chinese hospitality major H World Group sells stake in OYO for Rs 75 cr

The transactions, which were done in multiple tranches primarily over the course of 2022, have earned H World Group over Rs 75 crore, they said


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Chinese hospitality major H World Group Ltd is understood to have sold 0.15 per cent stake of OYO for around Rs 75 crore, valuing the Indian hospitality and travel-tech firm at around USD 6.5 billion, according to sources.
H World Group (HWG), which held 0.78 per cent shareholding in Oravel Stays Ltd that runs OYO, sold around one crore shares to a clutch of UAE-based family offices and institutional investors in a series of transactions, people in the know of the development said.
The transactions, which were done in multiple tranches primarily over the course of 2022, have earned H World Group over Rs 75 crore, they said.
"This implies a valuation of USD 6.5 billion for OYO," a person added.
Following the transactions, the holding of NASDAQ-listed H World Group (HWG) has come down to 0.63 per cent, which is now valued at over Rs 300 crore.
When contacted an OYO spokesperson declined to comment.

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HWG had acquired a stake in OYO in 2017 for USD 10 million at a reported valuation of USD 850-900 million in a top-up to SoftBank's Vision Fund-led funding round of USD 250 million.
OYO, which has been planning an initial public offer, in March refiled its Draft Red Herring Prospectus (DRHP) with the stock market regulator Securities and Exchange Board of India (Sebi) after being asked to refile the draft IPO papers with certain updates.
In September 2021 OYO had filed preliminary documents with Sebi for a Rs 8,430 crore IPO.
The launch of the IPO was delayed due to the then volatile market conditions making the company prepare to settle for a lower valuation at around USD 7-8 billion instead of the USD 11 billion it was targeting initially.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: May 30 2023 | 6:34 PM IST

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