The Indian start-up Oyo, supported by SoftBank, applies for an IPO valued at US $ 1.2 billion

An OYO Rooms logo displayed on a smartphone.

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The Indian hotel chain Oyo plans to raise around 84.3 billion rupees (1.16 billion US dollars) on an IPO, according to paper drafts submitted to the country’s market regulator.

Oyo plans to issue new shares valued at up to 70 billion rupees, while existing shareholders could sell shares valued at up to 14.3 billion rupees. Prominent supporters of the start-up include SoftBank Vision Fund, Lightspeed Venture Partners and Sequoia Capital India.

The startup said it is also considering issuing shares worth up to 14 billion rupees ($ 193 million) in a pre-IPO placement.

Headquartered in Gurugram, the company said it will use the proceeds from the IPO to meet existing commitments and fund growth that could include mergers and acquisitions.

Oyo’s technology enables hoteliers to accept online bookings and payments through its platform, among other things. The start-up has expanded beyond India to the USA, Europe and Southeast Asia. She sees India, Indonesia, Malaysia and Europe as central growth markets.

Last year, a New York Times report cast doubts about the Indian startup’s financial health and highlighted questionable tactics used in pursuit of growth.

The coronavirus pandemic has hit the hospitality industry and the Indian hotel chain has laid off employees to cut costs and losses.

The start-up is also the latest among a number of highly respected Indian tech start-ups to enter the public market.

The Zomato grocery delivery service celebrated its market launch in July. Payment giant Paytm has filed for an initial public offering of $ 2.2 billion. The ride-hailing company Ola plans to raise up to $ 1 billion in the IPO. Walmart’s own e-commerce player Flipkart is also reportedly considering a public listing.

CNBC’s Naman Tandon contributed to this report.

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