Traveltech Major OYO To Refile DRHP By Mid-February

Oravel Stays Ltd., which owns hospitality chain OYO, said that it will refile its draft red herring prospectus (DRHP) with the stock market regulator SEBI by the middle of February 2023.

The company had earlier indicated that the process of refiling the comprehensive document could take up 2-3 months. OYO’s last submission to SEBI was the updated financial results of the first half of FY23.

The regulator had subsequently asked the startup to refile the DRHP, updating all the relevant sections such as risk factors, KPI’s, outstanding litigations, basis for offer, among others.

In a letter to OYO, SEBI stated, “The disclosures contained in present DRHP do not take into account the material changes/disclosures arising from updated financial statements as filed through addendums leading to revised period for disclosures which in turn leads to necessities to make material updates in risk factors, basis of offer price, outstanding litigations and update other relevant sections of DRHP.”

Back in September 2021, OYO had filed preliminary documents with the SEBI for an INR 8,430 Cr IPO. DRHP contains detailed information about the IPO offer, shareholding pattern of the company, its directors remuneration among others.

“We are working on updating all key sections simultaneously. Responsibilities have been divided among different teams, with senior company leaders driving the collaboration with the Book Running Lead Managers, essentially the IPO bankers, the lawyers and the auditors,” an OYO spokesperson said.

“We are keen on refiling the DRHP by middle of February 2023, if not earlier,” the spokesperson added.

Founded by Agarwal in 2013, OYO is backed by marquee investors such as Masayoshi Son’s SoftBank, Airbnb, Lightspeed Venture Partners, Innoven Capital, Hero Enterprises among others

OYO reported a loss of INR 333 Cr during Q2 FY23, down nearly 20% from INR 414 Cr in Q1 FY23. It also narrowed down its half-yearly losses by 22.2% to INR 747.1 Cr in the first half of FY23, compared to INR 959.8 Cr during the corresponding period last fiscal year.

Amid the market volatility, the market listing continues to be shrouded in uncertainty and many startups such as PharmEasy, MobiKwik, boAt, Snapdeal and Droom have also deferred their IPOs.