The Securities and Exchange Board of India, a statutory body and a market regulator, has directed Oravel Stays Ltd, the parent company of travel-tech company OYO, to refile the revised and updated draft IPO papers.
With this, the investors who were keen to put their money in OYO’s initial share can expect a delay in the launch of the IPO.
OYO IPO Issue Size: According to draft offer documents lodged with SEBI by OYO in September 2021, the company aims to raise funds worth Rs 8,430 crore.
The offering would be a mix of a fresh issue of shares aggregating to Rs 7,000 crore and an offer-for-sale worth Rs 1,430 crore.
The SEBI website on Tuesday announced that it returned OYO’s draft red herring prospectus (DRHP) on December 30, 2022, and asked them to refile the draft offer document with applicable updates/ revisions.
However, the regulator did not reveal many details on the updates or revisions required in draft documents.
Earlier, the company had filed an addendum to its DRHP that included its first-half FY23 financials.
In the first two quarters of FY23, the travel-tech company posted a profit of Rs 63 crore compared with a loss of Rs 280 crore a year ago.
The company’s revenues in the first half (April-September) of FY23 rose 24 percent on-year to Rs 2,905 crore. Besides improving operations, the company recorded a cash corpus of Rs 2,785 crore, the filing to Sebi showed.
Microsoft, SoftBank Vision Fund, Lightspeed Venture Partners, and Sequoia Capital India, are some of the investors in OYO.