An Oyo accommodation, source- the economic times

Sebi returns OYO’s draft IPO papers; asks to refile with updates

SEBI, the capital markets regulator of India has ordered Oravel Stays Ltd, the parent company of travel-tech firm OYO, to file the draft IPO papers again with certain updates.

The refiling of papers might cause a delay in Gurugram-based hospitality unicorn’s initial public offering (IPO).The company had submitted its preliminary documents with the Securities and Exchange Board of India (Sebi) in September 2021 for a Rs 8,430 crore IPO.

The suggested offering consists of a new issue of shares of up to Rs 7,000 crore and an offer-for-sale of as much as Rs 1,430 crore.
On Tuesday, as per an update on SEBI’s website, the markets regulator returned the company’s draft red herring prospectus (DRHP) on December 30, 2022 and asked the firm to file it agajn with mentioned updates/ amendments. However, the regulator has not told in detail on the updates or revisions required in the draft documents.
Previously, in the year 2022, the company had filed an addendum to its DRHP which constituted its financials for the first half of FY23. It recorded a profit of Rs 63 crore for the first half of FY23 as against a loss of Rs 280 crore a year ago.

Ritesh Agarwal by ENtrackr
The updated information will also revise the basis of the offer price and other sections of the DRHP. The processing time of collating the additional information and submitting will take at least a quarter, which would delay the stock market debut,” reported Business Today on December 31.

The filing to SEBI reflected that the firm’s revenues in the first half (April-September) of FY23 grew 24% year-on-year to ₹2,905 crore. Apart from improving operating performance, the company has a cash surplus of ₹2,785 crore.

Moreover, OYO Founder and Group CEO Ritesh Agarwal said that the company saw a record 4.5 lakh-plus bookings on New Year’s eve, its highest statistic per hotel per day for India in the last 5 years.

In a string of tweets, Agarwal spoke about the “busiest day of the year” for the travel technology behemoth and shared that OYO saw much higher bookings in Varanasi as compared to Goa.

He further added, “Over 450k-plus bookings were made on this New Year’s Eve globally. This is 35 per cent more than last year. We are also seeing the highest bookings per hotel per day for India in the last 5 year.”

OYO is supported by the likes of Microsoft, SoftBank Vision Fund, Lightspeed Venture Partners, Sequoia Capital India, among others.