The valuation of IPO-bound OYO in the private market has dipped to around USD 6.5 billion after reports of a reduction in SoftBank's valuation of the hospitality and travel-tech firm in private books, according to industry players.
Nearly 12.3 lakh shares of the company were sold in the private market in the week ended September 30, 2022, compared to over 1.6 lakh shares sold in the previous week.
The sell-off followed reports that SoftBank had cut its valuation of the hospitality platform by 20 per cent to USD 2.7 billion in its books, said a source.
When OYO updated its financials in its draft prospectus last month, a positive EBIDTA was reported besides the narrowing of losses, the company's share price in the private market had risen to Rs 94 per share.
The company's valuation fell by nearly 13 per cent to 81 per share in the days following reports of the markdown of OYO's valuation by SoftBank.
In the last year, transactions of OYO shares in private markets happened at around USD 8 billion but in the recent past transactions are happening up to USD 6.5 billion, according to Analah Capital CEO Founder Vaishali Dhankani.
Dhankani, who is also CEO of Tradeunlisted.com, a tech-based distribution platform for private equity, said that some of OYO's past distractions seem to have gone away, and one anticipates a stronger bottom line and sticking to knitting. OYO reported revenue of 1,459 last month in a regulatory filing. In the three months ended June 30, 2022, 32 crore were spent.
The company, which had filed initial papers with Sebi last year to raise Rs 8,430 crore through an initial share-sale last year, had an adjusted EBITDA of 7.27 crore in the quarter ended June 30, 2022, which is a improvement from the adjusted EBITDA loss of Rs 471.72 crore in FY 22.
OYO's restated loss for the three-month period ended June 30, 2022 stood at Rs 413.87 crore, according to the filing. 8 crore.
When it filed the prospectus for its initial public offer, OYO initially looked at a value of around USD 10 billion but later on prepared to settle for a lower valuation of around USD 7 -- 8 billion.
Start-up calls it'speculation' and starts-up says it's 7 billion.