Oyo Pre-Files IPO Papers With SEBI
Such a filing was recently done by Tata Play, which became the first Indian firm to opt for it after SEBI introduced it last year.
SoftBank-backed Oravel Stays Ltd.—the company that owns and operates Oyo Rooms—has pre-filed its initial public offering papers with SEBI today, according to a person with knowledge of the matter, who spoke on condition of anonymity.
The hotel aggregator, led by Ritesh Agrawal, has chosen the confidential route this time, about three months after the market regulator returned the company's draft IPO documents.
Such a filing was recently done by Tata Play, which became the first Indian firm to opt for it after SEBI introduced the mechanism in October last year.
Companies can use the 'confidential' route to file documents with SEBI and stock exchanges without making them public during an initial review period. This allows sensitive information to be withheld for a longer period of time.
According to the person quoted above, the startup has chosen the confidential path for two reasons. Such a route allows the option to delay the offering for about six months and they can also opt to increase the issue size by up to 50%. Amid market volatility, these options make sense, the person said.
In January, after the initial DRHP was returned, the company had said it will update additional sections—such as updated risk factors, key performance indicators, outstanding litigations and the basis for valuation.
BQ Prime had then reported that Oyo's IPO, which was expected to be launched in the first half of 2023, is likely to be delayed by another quarter.
Oyo has raised a total of $4 billion in funding from investors such as SoftBank and Sequoia India.
In late November, Oyo reported its maiden positive adjusted Ebitda of Rs 63 crore in the first half of FY23. The firm reported a net loss of Rs 1,851 crore in FY22, against revenues worth Rs 4,905 crore.