Microsoft Corporation invests $5 million in OYO

PTI New Delhi | Updated on August 20, 2021

Last month, OYO raised $660 million from global institutional investors to pare debt and for other business investments.

Tech giant, Microsoft Corporation, invested nearly $5 million (about ₹37 crore) in OYO through the issuance of equity shares and compulsory convertible cumulative preference shares on a private placement basis by the latter, according to a regulatory filing by the hospitality chain.

An extraordinary general meeting of Oravel Stays Pvt Ltd (OYO), which runs the OYO Rooms chain of hotels, on July 16 approved issue of the equity shares and Series F2 compulsory convertible cumulative preference shares (Series F2 CCCPS) for “an aggregate consideration amounting to rupee equivalent of $4,971,650 to Microsoft Corporation on a private placement basis”, as per an return on capital filing by the company.

Under the deal, OYO will issue 5 equity shares of the face value of ₹10 each for cash at an issue price of India rupee equivalent of $58,490 per equity share.

Also see: Postman closes $225 million Series D round

Moreover, the meeting approved the issue of 80 Series F2 CCCPS of the face value of ₹100 each for cash at an issue price of rupee equivalent of $58,490 per Series F2 CCCPS.

The Series F2 CCCPS are issued at a minimum preferential dividend rate of 0.01 per cent per annum and will have priority with respect to repayment of capital vis-a-vis equity shares of the company, the filing said.

The terms of the Series F2 CCCPS for all purposes are covered under the “Shareholders’ Agreement” dated July 29, 2019, executed amongst the company, Microsoft Corporation, Ritesh Agarwal, and certain other parties (as may be amended, supplemented, superseded, or replaced from time to time), it added.

In July, OYO had announced raising TLB funding of $660 million (nearly ₹4,920 crore) from global institutional investors to be utilised for paring debt and other business investments. TLB refers to a tranche of senior secured syndicated credit facilities from global institutional investors.

Published on August 20, 2021

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