OYO DRHP rejected by SEBI – What Next ?

By | January 5, 2023
navapaisa.com

navapaisa.com

September 2021 mai OYO ne apna DRHP file kia. DRHP ke hisaab se IPO tha kuch Rs. 8430 crore jahan 7,000 crore fresh issue tha aur bacha, 1,430 crore tha offer for sale. Aapko yaad hoga DRHP file hote hi Zostel aur Federation of Hotel and Restaurant Association of India ne SEBI mai OYO ke against complaint bhi file ki thi aur urge kia tha ki iss IPO ko suspend kia jaye…

Well, suspend toh nahi lekin SEBI ne kia hai OYO DRHP ko reject. Yes, after giving acceptance to several startups last year like PayTM, Zomato and Policybazaar, that flopped big time on the indexes and duped crores of investors’s money, SEBI has asked OYO to make certain revisions and re-submit the DRHP.

Jis tarah se ove-the-top-valuation ke saath startups ke IPO list huye hain aur fir ussi tarah se girre hain, bohut zaroori tha ki SEBI ab koi ad example na set kare. Aakhir kaar humne already dekh hi lia hai ki kaise bloated listing price real market mai fail hote hain aur investors ka paisa dooa dete hain.

Kyun aise startup waale IPO usually fail hote hain?

Over the Top Valuation –

Kaafi saare IPO ke valuation hi galat hote hain, aur stock price kaafi high rehte hain jiska company ke profits se koi match hi nahi hota. PayTM ek poster boy raha hai iss situation ka aur time and again SEBI ko aise valuation ko approve karke market mai laane ka culprit bhi maana gaya hai. Yehi reason hai ki ab retail investors over-valued Mamaearth ke DRHP par bhi eyebrow raise kar rahe hain.

Cash Burn Machine

Kaafi saare startups ke IPO fail huye hain kyunki inn companies ne hamesha hi loss dekha hai aur inke expenses inke net revenue ke comparison mai bhadte hi gaye hain. Yeh startups pehle private parties se round-wise funding lete hain , cash burn karte hain aur phir IPO ke zariye inke investors exit route dekhte hain – jiska loss phir retail investors ko bharna padta hai.

Poor Business Model

Kaafi startup ka business model aisa hota hai ki unke already kaafi competitors hote hain ya phir unka business regulations, system ya phir external cheezon par dependent hota hai. Ek regulatory change aur business ko bhaari nuksaan!

Aur yehi teeno problem OYO ke saath bhi hai.

The company till date starting from its incorporation in 2013 have incurred net losses and so it’s ability to achieve profitability in near future is still unknown.

SoftBank, the largest investor in Oyo Hotels & Homes in September 2022, has cut its internal valuation of the hospitality startup to $2.7 billion after comparing it to similar firms in the public markets. So, yes it is over valued.

It again has regulatory and external issues which is why both Zostel and Federation of Hotel and Restaurant Association of India raised complaint against it to SEBI.

Aur bhi kaafi saare challenges hain OYO ke saath jaise ki –

Complaints of unpaid dues by Indian hotel partners
Police complaints by hotel groups and hoteliers
Protests by US hotel owners over OYO’s entry
Lack of profitability
Scrutiny by Competition Commission of India
Questions about asset-heavy model
Startup ke IPOs Retail Investors ke liye Profitable Entry nahi balki Existing Promoters ke liye Safe Exit Route Hai
Jo bhi startups IPO ke liye apply karte hain woh sabhi unicorns hai jo timely funding rounds se paisa accumulate karte hain aur apna kharcha bhi bhadhate chale jaate hain – kabhi marketing ka budget badhate hain, toh kabhi dusre operational expenses. Unfortunately, yeh paisa business ke growth ya phir innovation mai nahi jaata hai. Aur jab yeh business crash burning machine ban jaata hai, aur promoters ko apna paisa nikaalna hota hai toh IPO ke zariye promoters iss company se exit le lete hain.
Isliye bohut zaroori hai ki aise startup ke IPO bilkul bhi OFS naa ho – kyunki aise mai promoters business aur innovation ko nahi balki easy aur quick profit ke talaash mai rehte hain but at the cost of retail investors’ money.

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