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. The issue size, which will now be the primary issue to repay the majority of its debt, will be fixed between USD 400 and 600 million, depending on market conditions. There is a problem with the SEBI approval timing, which is probably 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.
“The company expects an adjusted EBITDA of around Rs 800 crore in FY2024, i.e. the next financial year,” the company’s founder, Ritesh Agarwal, stated during a town hall for employees on Monday. Keep doing business in a cost-effective manner.
We anticipate using very little of our current cash balance, which is approximately Rs 2,700 crore, for operations. Our cash flows have improved, and over time, our reliance on funding from outside sources 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, OYO filed preliminary documents with SEBI for an IPO of Rs 8,430 crore, which included an offer for sale of Rs 1,430 crore and a fresh issue of equity shares of up to Rs 7,000 crore.