Technology

Oravel Stays infuses Rs 634.5 crore into India operations of Oyo through allotment of new shares

New Delhi: Parent company Oravel Stays has infused Rs 634.5 crore into the Oyo India business through internal capital and allotment of new shares as per documents shared by business intelligence platform Tofler.

As per the documents shared by Tofler for Oyo Hotels and Homes, Oravel Stays was allotted 28, 31, 957 shares in Oyo Hotels & Homes for Rs 634.5 crore on November 5.

Oravel Stays was allotted series G compulsory convertible cumulative preference shares at a premium amount per share of Rs 2140.50.

In a response to ET’s queries, an Oyo spokesperson said this is a ‘business as usual’ transaction where the parent entity, Oravel Stays Private Limited is in the process of funding the operational and business requirements of Oyo’s India operations and global shared services, including servicing a large part of its global operations through its subsidiary Oyo Hotels and Homes Private Limited. “The filing is regarding that,” the spokesperson added.

Talking about an announcement last month, Rohit Kapoor, CEO, Oyo India and South Asia had said over the past few weeks, the company is seeing travel coming back across hill stations, beach destinations and other leisure hot spots in India and that the chain is strengthening its efforts to ensure safe and sanitised experiences for its guests.

In September, Oyo said it has launched a ‘one-stop solution’ for all travel-related assistance on the OYO app in India, including COVID-19 testing with ICMR approved pathology labs which included partnerships with Dr. Lal Path Labs, SRL Diagnostics, 1mg, and Indus Health Plus.

In October, Oyo elevated four leaders in India and appointed Ankit Gupta as the CEO, frontier and workspaces, Harshit Vyas as the COO for India and South Asia, franchise business, Abhinav Ankur as the chief strategy and transformation officer and Anuj Bhatnagar as CFO, business.

Oravel Stays, the parent company of hospitality chain Oyo Hotels & Homes, had received a capital infusion of about $ 807 million (around Rs 5,976 crore) in March from two of its backers, SVF India Holdings and RA Hospitality, the Ritesh Agarwal-controlled investment entity, as part of its ongoing $ 1.5 billion funding round.

In its regulatory filings with the Registrar of Companies, Oyo had allotted a total of 15,325 Series F compulsorily convertible cumulative preference shares (CCPS) to the two entities, at a price of $ 52,643.22 per share.

SVF India Holdings Limited had invested about $ 507 million, while RA Hospitality Holdings had put in about $ 300 million.

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Tech-Economic Times

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