Online hotel booking company OYO has made profit in a financial year for the first time. The company’s net profit in FY24 was Rs 100 crore. Company founder Ritesh Agarwal gave this information yesterday. He wrote on social media platform X – A happy customer or hotel partner brings the biggest smile on my face, our first financial of FY24 has also humbled me. Our first net profit financial year was around Rs 100 crore. This is the eighth consecutive quarter of positive EBITDA and we also have a cash balance of about ₹ 1000 crore. Ritesh said that global credit rating firm Fitch has also taken note of our improved performance and strong cash flow, which has improved our credit rating. Growth not only in India but also in other markets including Nordic, US and UK Ritesh Agarwal said that I am seeing growth not only in India but also in other key markets like Nordic, Southeast Asia, US and UK with emerging tourism trends, spiritual travel, business travel and destination weddings. Earlier this week, Fitch had improved the company’s rating Global credit rating firm Fitch Ratings earlier this week had upgraded the rating of Oyo’s parent company Oravel Stage from ‘B-‘ to ‘B’. According to media reports, in the financial year 2023-24, OYO has added about 5 thousand hotels and 6 thousand houses on its platform. OYO will soon submit draft again to bring IPO OYO is preparing to file draft red herring prospectus (DRHP) again to bring IPO. News agency PTI had reported on May 18 that Oyo is soon going to finalize its re-financing plan to raise $450 million through the sale of dollar bonds. JP Morgan may be the lead banker for refinancing through the sale of dollar bonds at an estimated annual interest rate of 9% to 10%. Oyo has already filed an application with market regulator Securities Exchange Board of India (SEBI) to withdraw its existing DRHP. The company intends to file an updated DRHP with SEBI after the bond issue. What is DRHP? DRHP is a document that contains essential information about the company planning an IPO. It is filed with SEBI. It contains important information about the company’s finances, its promoters, risks of investing in the company, reasons for raising funds, how the funds will be used, among other things. Why do companies bring IPO?
