Oyo IPO: Oyo IPO likely to be delayed by a quarter as SEBI looks to re-filter updates

New Delhi: The IPO of tech hotel startup Oyo, previously slated to launch in the first half of 2023, is now likely to be delayed for another quarter, as the Securities Commission and Indian Exchange (SEBI) wrote back to Company ask it to update the add-ons in Draft Red Herring Prospectus (DRHP), people familiar with the matter told ET.

The people cited above said Oyo was asked to update information such as updated risk factors, key performance indicators (KPIs), outstanding litigation and the basis for valuation. .

This development will delay Oyo’s proposed IPO by about three months as it will take more time to implement the updated DRHP and update filings.

However, a source close to the company said the opportunity to update all the important information is a ‘welcome’ step.

“It would be prudent to expect investors to put their money in the latest information base and we have been asked to provide any latest disclosures at the appropriate pre-IPO stage. This is the most sensible course of action at the moment. It may also change the IPO plan from two to three months, but we should be able to show a full financial year EBITDA profitability in the process,” said the person familiar with the company’s plans.

Oyo recently submitted an addendum to DRHP, financial figures for the first half of fiscal year 2022-2023 to SEBI, citing that potential investors should be made aware of a significant improvement in economic performance. business since filing for an IPO in September 2021.

It reported first time positive adjusted EBITDA of Rs 63 billion, a 24% increase in revenue year-on-year and a 69% increase in monthly booking value (GBV per month) for its hotels. for the first six months of fiscal year 2023. SEBI has asked the company to now also update other important information.

“Disclosures in the current DRHP do not take into account material changes/disclosures arising from the updated financial statements as filed through the appendices resulting in the revision period for the disclosures, thereby resulted in the need for significant updates in the Risk Factors, Basis of Offer, Notable Litigation, and other relevant updates to the DRHP,” SEBI stated in its letter to the DRHP. Oyo.

Oyo reported adjusted ebitda of Rs 56 crore for the September quarter, up from Rs 7 crore in the three-month period prior. The company posted a loss of Rs 333 crore compared to a loss of Rs 414 crore in the June quarter according to its addendum. The company said its Ebitda grew eightfold to Rs 56 million in the second quarter, thanks to a 23% increase in monthly revenue per property or gross booking value (GBV) per hotel. 4 thousand Rs. It reported revenue of Rs 1,446 crore in the second quarter.


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