Skift India Daily: Oyo Reportedly Ready to Slash IPO Size Even Further

Reports suggest that India-based budget hotel operator and aggregator Oyo will be reducing its Initial Public Offering (IPO) size by about two-thirds. The company is likely to file a fresh document for its IPO as soon as this week, according to a Bloomberg report. The company had initially filed to go public in October 2021. In December, India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), had advised Oravel Stays, the parent company of Oyo, to refile the draft prospectus, updating all the relevant sections such as risk factors, key performing indicators, outstanding litigations and basis for offer. Oyo’s last submission to SEBI was the updated financial results of the first half of financial year 2022-23. Updating its draft red herring prospectus with results for the first half of the 2023 financial year in November, Oyo had reported that its adjusted earnings before interest, taxes, depreciation, and amortization for the second quarter grew eight times from $860,000 in the first quarter to $7 million primarily driven by a 23 percent quarter-on-quarter rise in gross booking value per hotel. However, speaking at a town hall on Monday, Oyo Founder and Group CEO Ritesh Agarwal told employees that Oyo expects its revenue in the financial year 2023 to be more than $692.5 million, up 19 percent from 2022’s $581 million. Agarwal attributed the company’s better financials to sustained growth in India, Indonesia, the U.S., and the UK, and relevant optimization and synergies in its European vacation homes business. He outlined that Oyo’s key focus areas this year would be on profit after tax along with consistent momentum in earnings before interest, taxes, depreciation and amortization, achieving cash flow positive in financial year 2024, cost efficiency and improving contribution margins, and making storefront additions. 

The state tourism department of Rajasthan bagged 206 new tourism and hospitality project registrations in 2022, up from 187 in 2019. The state government credits its investor-friendly schemes for the marked increase in projects post-Covid. “No state matches the incentives we provide to the tourism industry,” claimed Gayatri Rathore, principal secretary of tourism. Rajasthan has also accorded industry status benefits to the tourism and hospitality sector. Under the scheme, hotels and resorts get a 30 percent tariff rebate on electricity, which accounts for the biggest operating cost after manpower for a hotel. Similarly, there is 80 percent relief on urban development tax for the tourism units. 

Low-cost carrier Akasa Air plans to employ nearly 1,000 people, bringing the total staff strength to more than 3,000 by the end of March 2024, CEO Vinay Dube said recently. The seven month-old airline, which started operations in August 2022, will also foray into new routes and launch international flights too by the end of 2023. The potential overseas destinations are yet to be finalized. Dube revealed that the carrier will place a “three-digit aircraft order” by the end of this year. It has ordered 72 Boeing 737 Max airplanes, 19 of which are already in service. The 20th aircraft will be inducted in April, after which it will be able to fly internationally. The carrier plans to add nine aircraft to its fleet in the coming fiscal year, bringing the total to 28. It currently runs 110 flights per day.

Indian conglomerate Godrej Group’s flagship company Godrej & Boyce has announced that its business Godrej Tooling has partnered with Japanese manufacturer of vehicle cleaning machines JCW Japan to develop an automated and sustainable washing system for the Indian Railways and metro subways. With higher water recycling percentages and lesser energy consumption, the alliance will introduce the global technology to India. “As the train passes through the automatic train wash plant, it will undergo a series of pre-programmed functions, including soaking, rinsing, foaming, washing, and drying cycles that will vary according to the coach variant,” said Pankaj Abhyankar, senior vice president and business head of Godrej Tooling. “Depending on the train’s length, the entire cleaning process takes only five to ten minutes,” he added. 

Traditionally known as a prime travel destination for Indian families and groups, Singapore is now trying to position itself as a destination for single female travelers. Singapore’s tourism development agency — Singapore Tourism Board — in collaboration with Delhi-based travel community platform Tripoto has launched a web-series to showcase how the destination’s range of experiential offerings perfectly caters to solo female travelers. “Singapore has traditionally been best known as a prime travel destination for Indian families and groups. Increasingly, we are also observing more and more female travelers empowered to travel to seek out their adventures and self-discoveries in Singapore, to experience who they are and fulfill their passions,” said G.B Srithar, regional director for India, Middle East, South Asia and Africa of Singapore Tourism Board.

Indian airports operator Airports Authority of India (AAI) has set up two Aviation Skill Development Centers in collaboration with the National Skill Development Corporation, (NSDC), the strategic implementation and knowledge partner of the Ministry of Skill Development and Entrepreneurship. While the Aviation Multi-skill Development Center has been set up in the north Indian city of Chandigarh and the Aviation Skill Development Center in India’s financial capital Mumbai, Aerospace and Aviation Sector Skill Council acts as an awarding body to assess the participants undergoing training and award certifications to successful candidates. There are 108 training centers accredited by Aerospace and Aviation Sector Skill Council.

Abu-Dhabi based Etihad Airways has resumed direct daily operations between Kolkata and Abu Dhabi. The aircraft will depart Abu Dhabi at 9.10 pm local time, and land in Kolkata at 3.30 am. It will take off from Kolkata at 4.35 am, and reach the UAE capital at 8.15 am local time. The flights will be operated with an Airbus A320 aircraft, offering eight seats in business class and 150 in economy. “Re-establishing this vital air link with East India will support the growing demand from travelers in and around the region, offering them easy access to Abu Dhabi and connectivity to our global network alongside a world-class flying experience,” said Arik De, chief revenue officer of Etihad Airways. The airline had stopped its services between Kolkata and Abu Dhabi following the Covid-19 outbreak.

India’s coastal regions — home to millions surviving on the revenue earned from fisheries — are in danger as water levels continue to rise, as per a report by the Intergovernmental Panel on Climate Change (IPCC). “Sea level rise is a threat in low-lying coastal areas, and that would include cities like Mumbai and Kolkata. Sea level rise and tropical storm surges are leading to salinization of coastal areas, e.g., in the Sunderbans of India, which is popular tourism destination. Here, protecting mangroves and investing in ecosystem-based adaptation is the need of the hour,” said Aditi Mukherjee, one of the co-authors of the report. The report has also raised red flags regarding the survival of important ecological balancers like the coral reef. Global greenhouse gas emissions have continued to increase, arising from unsustainable energy use, land use, patterns of consumption and production across regions, the report said. 

Vistara — a joint venture of Tata Group and Singapore Airlines — has started direct flight services between Mumbai and Mauritius. The 5 times weekly service connects India to the island nation in Africa. The Vistara flight UK 0241 on the route will fly on Mondays, Wednesdays, Fridays, Saturdays, Sundays at 07:30 hours and will reach at 12:00 hours (local time). On the Mauritius-Mumbai route, the flight UK 0242 will fly on the same days at 13:30 hours and will land at 21:00 hours (Indian Standard Time). The airline has deployed its recently inducted A321LR aircraft with a three-class configuration, becoming the only carrier to offer customers the choice of premium economy cabin in addition to business and economy Class, on this route. 

Tamil Nadu tourism minister K. Ramachandran urged officials to speed up tourism projects in the hill town of Ooty. Ramachandran — who inspected the Ooty Lake and Boat House to assess the progress of works being built at a cost of $608,000 — informed that the Nilgiris district in the state witnessed 2.3 million tourists from April 2022 until now. The projects also included adventure sports facilities such as a zip line, canopy tour, zip cycle, giant swing, roller coaster zipline, bungee jumping, a rocket ejector as well as a 450-meter suspension bridge. The minister said the suspension bridge would attract many tourists once completed. “Work for a rope car unit connecting the Doddabetta peak and the Valley View will also be initiated soon,” he said.