Hospitality firm Oravel Stays Ltd., which operates the brand OYO, is set to refile its public listing application – Draft Red Herring Prospectus (DRHP) with the stock market regulator SEBI by the middle of Feb 2023, according to a source close to this development.
The Ritesh Agarwal-founded company had earlier indicated that the process of refiling the comprehensive document could take up to 2-3 months. OYO’s last submission to SEBI was the updated financial results for the first half of financial year 22-23.
The regulator subsequently asked OYO to refile the DRHP, updating all the relevant sections such as Risk Factors, KPIs, Outstanding Litigations, Basis for Offer etc.
SEBI has mentioned in its letter to OYO, “The disclosures contained in present DRHP do not take into account the material changes/disclosures arising from Updated financial statements as filed through addendums leading to the revised period for disclosures which in turn leads to necessities to make material updates in Risk Factors, Basis of Offer Price, Outstanding Litigations and update other relevant sections of DRHP.”
Sharing the progress on the IPO refiling exercise, an official OYO spokesperson said, “We are working on updating all key sections simultaneously. Responsibilities have been divided among different teams, with senior company leaders driving the collaboration with the Book Running Lead Managers, essentially the IPO bankers, the lawyers and the auditors. We are keen on refiling the DRHP by the middle of Feb 2023, if not earlier.”
The company refused to offer any estimation of the time it expects SEBI to take for approval, once the DRHP is filed. However, a source close to the matter opined that the company hopes to get the approval by April 2023.
OYO had recently submitted through an addendum to the DRHP, the first half, of FY 2022-23 financial numbers to SEBI citing that potential investors need to be made aware of the material uptick in its business performance since its IPO application in September 2021.
It had reported its maiden positive adj. EBITDA of Rs 63 cr, a 24% year-on-year increase in revenue and a 69% increase in monthly booking value (GBV per month) for its hotels in the first 6 months of FY2023.
The SoftBank-backed startup had filed preliminary documents with Sebi in September 2021 for Rs 8,430 crore IPO. The company was earlier expected to launch the IPO in the first half of CY2023, around the month of May.