Oyo pre-files IPO paper confidentially, cuts issue size: Reports

2 Apr 2023 , 10:48 PM

SoftBank-backed Oravel Stays which runs Oyo hotels has refile the initial public offer (IPO) papers with SEBI in a confidential pre-filing, people aware of the development said. 

The confidential filing route was introduced in November 2022 by the markets regulator Secrities and Exchange Board of India (SEBI). 

The sources said that the company aims to raise $400-600 million, consisting entirely of freshly issued shares with all the proceeds going to the firm. It plans to repay the loans from the proceeds. Oyo expects to be list on bourses around Diwali.

Under the confidential route option, filing is available at the initial stage only to the market regulator. This was brought about by SEBI as part of bringing in progressive and globally popular practices. The confidential pre-filing option has been available and actively utilised in large global economies such as the US, the UK, Canada, etc. This route was first utilised by Tata Play in November 2022.