OYO To Refile Updated Draft IPO Papers By Mid-February

The Securities and Exchange Board of India had asked OYO to refile the draft IPO application with certain updates earlier this month

OYO's last submission to Sebi was the updated financial results of the first half of FY22-23.

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Oravel Stays Ltd, which operates travel tech firm and brand OYO, on Wednesday said it will refile its draft initial public offering (IPO) papers by the middle of February, the PTI reported.

The Securities and Exchange Board of India (Sebi), had asked the company to refile the draft IPO application with certain updates earlier this month. The regulator had asked the firm to refile it with applicable updates/ revisions. Although, the Sebi did not elaborate on the updates or revisions required in the draft documents.

"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. We are keen on refiling the draft red herring prospectus (DRHP) by middle of February 2023, if not earlier," a company spokesperson said.

According to the PTI report, OYO said the capital markets regulator in a letter had said that "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".

OYO's last submission to Sebi was the updated financial results of the first half of FY22-23. The company had earlier indicated that the process of refiling the comprehensive document could take up to 2-3 months.

In September 2021, OYO had filed preliminary documents with the Securities and Exchange Board of India (Sebi) for a Rs 8,430 crore IPO.  The launching of the IPO was delayed because of then volatile market conditions making the firm prepare to settle for a lower valuation at $7-8 billion instead of the $11 billion it was targeting initially.