As volatility persists, OYO listing may get delayed

A person aware of the development said the company would launch the IPO only after September. Another report indicates the IPO is not likely to hit the market in 2022.
OYO  (File Photo| PTI)
OYO (File Photo| PTI)

NEW DELHI: The much-awaited IPO of Bank-backed hospitality firm OYO is likely to get delayed as the company has written to market regulator Sebi, seeking to file updated consolidated financial information.
A person aware of the development said the company would launch the IPO only after September. Another report indicates the IPO is not likely to hit the market in 2022.

Oravel Stays, which runs OYO, had filed preliminary papers with Sebi to raise Rs 8,430 crore through an initial share sale in October last year but hasn’t yet received a green signal from the regulator. It is also learnt that the firm is prepared to settle for a lower valuation of nearly $7-8 billion as against the previous target of $11 billion. In August 2021, when OYO raised $5 million from Microsoft, it was valued at $9.6 billion.

“Price swings in a newly-listed stock create concern among the public. Among such sentiments, it will be best to be able to first show the investors that the business revival is real, it is strong and is leading to much higher bookings and perhaps, the first sign of a positive bottom line. Hence, OYO is likely to wait for a quarter,” said a person aware of the company’s plans to go public.

In a letter to Sebi, Oyo has sought permission to include restated financial statements for six-month periods ending September 30, 2022; September 30, 2021; and September 30, 2020. According to the company’s draft red herring prospectus, OYO made a loss of Rs 1,744.7 crore in FY21. This change in plan came after a sharp plunge in share prices of new-age companies such as Paytm, Zomato, Nykaa and a few other loss-making companies.

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