Tech Giant Microsoft Corporation Invests $5 Million In OYO

Tech giant Microsoft Corporation has invested nearly USD 5 million (about Rs 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 USD 4,971,650 to Microsoft Corporation on a private placement basis", as per an RoC filing by the company.

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

Moreover, the meeting approved the issue of 80 Series F2 CCCPS of the face value of Rs 100 each for cash at an issue price of rupee equivalent of USD 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amongst the company, Microsoft Corporation, Ritesh Agarwal, and certain other parties (as may be amended, supplemented, superseded, or replaced from time to time), it added.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 USD 660 million (nearly Rs 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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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