SEBI Returns Oyo's Draft IPO Papers; Asks Firm To Resubmit

Oyo had initially filed documents for an IPO worth $1.1 billion in September 2021.

<div class="paragraphs"><p>(Source: Ritesh Agarwal/Twitter)</p></div>
(Source: Ritesh Agarwal/Twitter)

The Securities and Exchange Board of India has asked Oyo to revise its draft initial public offering documents and resubmit.

Oravel Stays Ltd., better known as Oyo, had initially filed documents for an IPO worth $1.1 billion in September 2021, but SEBI's decision could delay the firm's IPO.

The financial market regulator returned the company's draft IPO documents on Dec. 30, according to an update on the SEBI website.

The IPO, which was expected to be launched in the first half of 2023, is now likely to be delayed by another quarter, according to a person in the know, who spoke on condition of anonymity.

The company will now look to update additional sections in its draft red herring prospectus, such as updated risk factors, key performance indicators, outstanding litigations, and the basis for valuation.

In late November, Oyo had already filed an addendum to the DRHP and reported its maiden positive adjusted Ebitda of Rs 63 crore in the first half of FY23.

The proposed IPO is a combination of a fresh issue and an offer for sale.

The update did not specify the reason for the documents being returned.

Oyo has raised a total of $4 billion in funding from investors such as Softbank and Sequoia India.

The firm reported a net loss of Rs 1,851 crore in FY22, against revenues worth Rs 4,905 crore.