OYO,
According to sources, Oravel Stays, which owns and operates Oyo, pre-filed its draft red herring prospectus with stock market regulator Sebi on Friday. PTI was informed by sources close to the company that Oyo may launch its IPO around Diwali this year.
In contrast to the standard procedure, which requires companies to launch an IPO within a year of SEBI’s approval or final observation; An IPO can be issued under the pre-filing method within 18 months of the date of SEBI’s final comment.
Up until the Updated Draft Red Herring Prospectus (UDRHP) stage, this route also offers the flexibility to change the size of the primary issue by up to 50%.
A source stated, “Markets remain highly volatile globally and to some extent in India as well,” in support of the decision to file through pre-filing. Oyo will benefit from filing through the pre-filing route. The timing will be more flexible. determining the listing and issue size, which will now serve as the primary means of repaying the majority of its debt and will range from $400 million to $600 million, depending on market conditions. After SEBI approval, there is a issue timing for the issue, which is likely to be around Diwali.
OYO’s last accommodation before the Protections and Trade Leading body of India (SEBI) in November 2022 was of its refreshed monetary outcomes for the main portion of the monetary year 2022-23, which professed to illuminate expected financial backers about material development. must be aware. its business performance since its initial September 2021 IPO filing.
Ritesh Agarwal, the founder of the company, stated, “The company expects Adjusted EBITDA to be close to Rs. 800 crores in FY2024, for example the forthcoming monetary year. We are implementing measures to maintain our cost-effective operations and healthy cash flow.
“Our current cash balance is approximately 2,700 crore, of which we anticipate using very little for our current operations. Our cash flow has improved, and over time, our reliance on external funds has decreased.
Additionally, he mentioned that the company’s performance can be attributed to synergies in its European vacation home business as well as ongoing growth and contextual optimization in India, Indonesia, the United States, and the United Kingdom.
On September 20, 2021, preliminary documents for OYO’s 8,430-crore initial public offering (IPO) were filed with SEBI. These documents include an offer to sell 1,430 crores and a new issue of equity shares for a total of 7,000 crores.
