This move by the market regulator may delay the launch of the OYO IPO.
new Delhi:
Specifications Change Board of India (SEBI) has returned the IPO document for the Initial Public Share (IPO) of Oravel Stages Limited (Oravel Stages Limited), the parent company of OYO (Oyo). Along with this, the market regulator has ordered the company to re-submit the Draft Red Herring Prospectus (DRHP) with certain modifications.
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Let us tell you that this move of SEBI may delay the launch of the IPO of hospitality sector company OYO (OYO). Oyo had document jam authorization with market regulator SEBI for an IPO of Rs 8,430 crore in September 2021. The IPO will see fresh issue of shares worth Rs 7,000 crore and offer for sale (OFS) worth Rs 1,430 crore.
Sebi had returned the company’s IPO document on December 30, 2022 and asked it to re-file with amendments. However, SEBI has not elaborated on the amendments required to be made in the draft documents. The company had said that it used the funds raised through the IPO to repay the loan and expand the business.
Oyo is backed by SoftBank and SoftBank holds around 46 per cent stake in the company. The company posted a profit of Rs 63 crore in the first quarter of FY 2022-23, as against a loss of Rs 280 crore in the year-ago period. Present OYO provides hospitality service in 10,000 cities in 35 countries around the world.
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