Nov 18, 2024 02:01 PM IST
Oyo acquired US-based hospitality chain Motel 6 and Studio 6 from Blackstone Real Estate for $525 million in September this year
Oyo’s founder and CEO Ritesh Agarwal may personally invest ₹550 crore into the company as it looks to expand globally as part of a proposal which will be taken up during the company’s extraordinary general meeting (EGM) on December 9 as a special resolution.
Agarwal will be buying more than 12.9 crore shares at ₹42.60 each, which will increase his stake from 30% to 32%. This is a 45% premium compared to his last purchase in August 2024.
This would value Oyo close to ₹32,000 crore, according to a Moneycontrol report.
Oyo recently acquired US-based hospitality chain Motel 6 and Studio 6 from Blackstone Real Estate for $525 million in September this year; A move to expand operations in the US market.
Oyo initially got launched in the US in 2019 and operated more than 320 hotels across 35 states. In 2023, it added close to a 100 hotels to its US portfolio and now aims to add around 250 hotels in 2024.
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Oyo’s previous funding round worth $175 million was was led by Agarwal and included participation from family offices and private investors including InCred Wealth, J&A Partners – the family office of Mankind Pharma promoters, ASK Financial Holdings and investor Ashish Kacholia.
The company posted its first ever profit of ₹229 crore during the financial year 2023-24. During the September quarter this year, its net profit was ₹291 crore, compared to a loss of ₹91 crore during the same quarter of the previous year. Its revenue also grew 12% to ₹1,578 crore.
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