A startup in hospitality technology, Oravel Stays, or OYO, which planned to go public in the first half of 2023, would postpone the IPO by a quarter. According to the report, the Securities and Exchange Board of India (SEBI) has written back to the company, requesting that it update additional sections of its Draft Red Herring Prospectus (DRHP), such as updated risk factors, key performance indicators (KPIs), outstanding litigations, valuation basis, and so on.
“This would delay OYO’s proposed IPO plan by around three months as the exercise of updating the DRHP and updated filings would consume the additional time,” the source said. The Ritesh Agarwal-led company is also required to “provide any latest disclosures at the appropriate pre-IPO stage”.
The revised information will also adjust the offer price’s foundation and other sections of the DRHP. The processing time for gathering new material and submitting it will take at least a quarter, delaying the stock market debut.
After a difficult two years due to the COVID-19 outbreak, OYO relaunched its stock market plans this year.
The company filed an update to its DRHP in September, revealing its financials for FY20, FY21, and FY22. The company recently announced its financial results for the current fiscal year, which showed that revenues in the first half of FY23 increased by 24% to Rs 2,905 crore. OYO also recorded a 69% increase in gross booking values (GBV). GBV is the monthly revenue earned by the corporation per hotel.
However, in the second quarter of FY23, the tech start-up reported a net loss of Rs 333 crore. Agarwal created OYO in 2012. Microsoft, SoftBank Vision Fund, Lightspeed Venture Partners, Sequoia Capital India, and others have invested in OYO.
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