Hospitality startup Oyo has carried out a top-level reshuffle amid reports it is tweaking its initial share sale plans as Indian capital markets go through a volatile phase.
Oyo’s current CEO (India and Southeast Asia) Rohit Kapoor will now be the company’s global marketing head. Ankit Tandon, the firm’s global Chief Business Officer, will take on the additional responsibility of Southeast Asia with a specific focus on Indonesia and the Gulf region as its CEO.
Ankit Gupta, now the CEO of Hotels and Homes-India, will take on the role of CEO-India. All three executives will take up their new positions from April 1 and will report to founder Ritesh Agarwal.
Oyo parent Oravel Stays filed its draft red herring prospectus in September last year for an initial public offering of 84.30 billion rupees (US$1.1 billion) and was aiming to enter capital markets early this year. However, this document is yet to get approval from capital markets regulator the Securities and Exchange Board of India.
Hospitality industry body the Federation of Hotel & Restaurant Associations of India had earlier requested the market regulator suspend Oyo’s initial share sale process, citing various irregularities and the non-disclosure of tax evasion cases in its prospectus submitted to regulators.
Now there are reports that Oyo may slash its initial public offering size to half or even drop the plan to enter the capital markets. If it opts for the former, it will have to file a fresh draft red herring prospectus.
The lackluster runs of technology startups such as Zomato and Paytm in capital markets have made Oyo and its investors SoftBank Group Corp and Sequoia cautious. Even the Indian government, which had a speedy approval for a stake sale in Life Insurance Corporation, is in no hurry to enter capital markets.