Oyo’s draft prospectus returned by SEBI; asked to refile with updates

4 Jan 2023 , 09:57 AM

SEBI, the capital markets regulator has asked the parent company of travel-tech firm Oyo, Oravel Stays Ltd, to refile draft papers with updates. The company filed preliminary documents with the SEBI in September 2021 for Rs 8,430 crore IPO.

The proposed issue size consists of fresh issue of equity shares of Rs 7,000 crore and an offer for sale of up to Rs 1430 crore.

As per various reports, this move by SEBI may delay the IPO of the Gurugram-based hospitality unicorn for some more time. The IPO was expected to be launched in the first half of 2023.

Earlier to this, OYO had filed an addendum to its DRHP which included its financials for the first half of FY23. The company has reported a profit of Rs 63 crore for the first half of FY23 as against a loss of Rs 280 crore a year ago.

SEBI has only asked Oyo to update risk factors, its key performance indicators (KPIs), outstanding litigations and the basis for valuation in the company’s draft red herring prospectus (DRHP).