NEW DELHI: The much-awaited IPO of OYO is likely to be delayed till September-October of 2023 (around the Diwali Period) as the capital markets regulator Sebi (Securities and Exchange Board of India) has asked Oravel Stays Ltd, the parent company of travel-tech firm OYO, to refile the draft public offering papers with certain updates.
According to an update by Sebi, the regulator returned the company’s draft red herring prospectus (DRHP) on December 30, 2022, and asked the firm to update additional sections in its Draft Red Herring Prospectus (DRHP), such as updated risk factors, KPI’s, (outstanding litigations, basis for valuation) etc. This development may augur well for OYO as it allows the firm to incorporate October-December quarter data when travel activity was at its peak. The recently concluded quarter witnessed high hotel booking throughout India and OYO is said to have raked in solid numbers.
A source close to the company said the opportunity to update all material information is a highly welcome step. “It would only be prudent to expect investors to put in money basis latest information, and we have been needed to provide any latest disclosures at the appropriate pre-IPO stage.
This is the most sensible course of action now. It may shift the IPO plans by two-three months, but we will be able to show a full financial year of EBITDA profits in the process,” said the source. The Ritesh Agarwal-promoted startup had filed preliminary documents with Sebi in September 2021 for a `8,430 crore IPO.