Oyo, a hotel aggregation platform backed by Softbank, plans to resubmit its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) by mid-February.
The company previously stated that the process of refiling the DRHP with additional information requested by SEBI could take 2-3 months.
Oyo has not provided an estimate for the approval time from SEBI once the DRHP is submitted, but a source familiar with the matter said the company hopes for approval by April 2023.
SEBI previously asked Oyo to resubmit the DRHP, updating sections such as risk factors, key performance indicators, outstanding litigations, and the basis for the offer.
Oyo had initially filed preliminary documents with SEBI in September 2021 for an IPO worth Rs 8,430 crore, which included a fresh issue of shares worth up to Rs 7,000 crore and an offer-for-sale of up to Rs 1,430 crore.
SEBI’s letter to Oyo stated that the disclosures in the previous DRHP did not take into account material changes or disclosures from updated financial statements, leading to necessary updates in risk factors, the basis for the offer price, outstanding litigations, and other relevant sections of the DRHP.
An Oyo spokesperson said that the company is working on updating all key sections simultaneously and aims to refile the DRHP by mid-February 2023 or earlier.
Oyo had previously filed an addendum to the DRHP including its financials for the first half of FY23, reporting a profit of Rs 63 crore compared to a loss of Rs 280 crore the previous year.
The company’s revenues for the first half of FY23 grew 24% YoY to Rs 2,905 crore. The filing also revealed a cash corpus of Rs 2,785 crore and a positive adjusted EBITDA of Rs 63 crore.
SEBI has asked the company to update other material information and is in line with its expectation for higher transparency in the IPO process. Recently, SEBI has requested companies to share additional KPIs and the basis for pricing IPOs. The regulator also discussed steps to reduce the IPO processing time, which has increased to 113 days, in a meeting with bankers in December 2022.
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