Valuation of IPO-bound OYO in the private market has dipped to around USD 6.5 billion following reports of a markdown of valuation of the hospitality and travel-tech firm by SoftBank in its private books, according to industry players.
In the week ended September 30, 2022, nearly 12.3 lakh shares of the company were sold in the private market as compared to over 1.6 lakh shares sold in the previous week.
The sell-off followed reports that its largest investor SoftBank has cut the 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, reporting positive EBIDTA besides the narrowing of losses, the company’s share price in the private market had risen to Rs 94 per share.
However, in the subsequent days following reports of the markdown of OYO’s valuation by SoftBank, the company’s valuation dipped by nearly 13 per cent to Rs 81 per share, said the source.
“Last year, …
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