The Securities and Exchange Board of India(SEBI) has asked Oyo’s parent company Oravel Stays Ltd to refile the draft IPO papers with specific updates, according to a PTI report. The market regulator’s move could delay the initial public offering (IPO) of the travel-tech start-up, the report said.
The Gurugram-based unicorn had filed IPO documents with SEBI in September 2021. The company had filed for a Rs 8,430 crore IPO with SEBI in September 2021, of which Rs 7,000 crore consists of a fresh issue of shares and an offer-for-sale of Rs 1,430 crore.
The report said that the markets regulator returned the company's draft red herring prospectus (DRHP) on December 30, 2022, and asked the firm to refile it with applicable updates/ revisions. Although, SEBI has not elaborated on the updates or revisions required in the draft documents.
Previously, the company filed additional documents to its DRHP that included its financial results for the first half of FY23. It reported a profit of Rs 63 crore for the first half of FY23, compared to a loss of Rs 280 crore the previous year. Revenues for the first half of FY23 (April-September) increased by 24 per cent year-on-year to Rs 2,905 crore. In addition to improving operating performance, the company has a cash corpus of Rs 2,785 crore, the report said.
Before examining and processing the company's IPO application, the market regulator granted Oyo permission to submit updated financials.
Oyo in December announced it will downsize about 10 per cent of its 3,700-employee base by cutting 600 jobs in the technology and corporate verticals and hiring 250 members, primarily in the relationship management teams.
Oyo said the move is part of implementing wide-ranging changes in its organisational structure. It is downsizing its product & engineering, corporate headquarters, and Oyo Vacation Homes teams, while it adds people to the partner relationship management and business development teams.