Bangalore: hospitality startup Oyo Hotels & Homes has filed its draft prospectus with the country’s capital markets regulator Securities and Exchange Board of India (SEBI) to raise Rs 8,430 crore ($1.2 billion) through a public issue, which will help those tapping the public markets. A growing number of local startups have joined.

Oyo plans to raise around Rs 7,000 crore ($950 million) by issuing fresh shares, while the rest will be raised through secondary share sales (Offer for Sale or OFS). In an offer for sale, existing investors sell their stake, in part or in full.

The net proceeds from the issue will be used for prepayment or repayment of borrowings made by the subsidiaries of OYO. This is approximately Rs 2,441 crore, while it will also use Rs 2,900 crore to finance its organic and inorganic development initiatives. The rest of the IPO proceeds will be for general corporate purposes.

With this, Oyo joins some other top tier Indian startups like Paytm, PolicyBazaar, Nykaa and others that have applied for IPO in the past few months.

online food delivery firm
Zomato got off to a great start in July Setting the stage for domestic startups to ride the current IPO wave.

The IPO filed by Oyo comes at a time when it is embroiled in a year-long legal battle with Zostel.so roman) which was once its rival.

Zostel is expecting an interim stay from the Delhi High Court to ban the SoftBank-backed company from revising its cap table through an IPO. The controversy, which dates back to 2016,
Next hearing will be on October 7 As reported by ET.

ET was the first to report that
Oyo considering valuation of over $12 billion through its IPO. However, Oyo has not mentioned its expected share pricing in DRHP. Oyo was last valued after $9.6 billion
Raising approximately $5 million in strategic investment from Microsoft.