Oyo to refile draft papers with SEBI for IPO by next month; details here

Oyo has notified that it is going to refile its draft initial public offering (IPO) documents by mid-February this year. The Securities and Exchange Board of India (SEBI) returned the previous documents to Oravel Stays Ltd, which operates Oyo on 30 December 2022. It was asked to refile the draft red herring prospectus (DRHP) with updates and revisions. Initially, Oyo had filed its draft papers with SEBI in September 2021 for a public issue of Rs 8,430 crore. The issue comprised a primary capital raise of nearly Rs 7,000 crore and a secondary share sale of Rs 1,430 crore. The hospitality chain wrote to SEBI in May last year for revising its financials, delaying its initial public offering beyond September during weak market conditions, as reported by VCCircle. The firm was looking at a valuation of around $ 10 billion during the time of filing its DRHP, which it then reduced to $7-8 billion. In a recent development, the valuation of Oyo in the private market dropped by nearly $6.5 billion. This comes after SoftBank slashed the company’s valuation in its books by more than 20 per cent. A year after filing the DRHP, Oyo revived its public issue plans in September. It filed an addendum to its original DRHP after the cut in costs and recovery in travel reduced losses. A second addendum was filed by the company in November, and updated SEBI and potential investors about its financial performance in the first half of FY23. Following this, the company was asked to update all the relevant sections and file the DRHP afresh by the regulator. The relevant section included risk factors, Key Performance Indicator (KPI), outstanding litigations and the basis for the offer. Oyo had registered a profit of Rs 63 crore for the first half of FY23, against a Rs 280 crore loss a year ago. The firm’s revenues in the six months to 30 September increased by 24 per cent to Rs 2,905 crore from a year earlier. Based in Gurugram, Oyo was founded by Ritesh Agarwal in 2012. It focuses on four main regions- India, Indonesia, Malaysia, and Europe. The firm manages vacation homes in these regions. It has cut down its operation in some markets it previously thought as important, like the US and China. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.