PremiumOyo reported a profit of ₹63 crore for the first half of FY23 as against a loss of ₹280 crore a year ago. Its revenues during April-September 2022 grew 24% year-on-year to ₹2,905 crore.
BENGALURU: Hotel booking company Oyo, operated by Oravel Stays Ltd., on Wednesday said it will refile draft papers for its initial public offering (IPO) by middle the middle of February with the Securities and Exchange Board of India (Sebi).
In December, the market regulator had asked the firm to refile its draft red herring prospectus (DRHP) with applicable updates or revisions.
The move had delayed the Softbank-backed company’s target of an early 2023 listing. Oyo had initially filed its DRHP with Sebi in September 2021 for a ₹8,430 crore issue.
A year later, in September 2022, the company revived its IPO plans, filing an addendum to its earlier submitted DRHP after cost cuts and a recovery in travel helped it reduce losses. It filed a second addendum in November 2022, updating Sebi and potential investors with financial performance in the first half of financial year 2023.
Meanwhile, Oyo’s valuation in the private market has dipped to around $6.5 billion, according to reports. This followed reports suggesting SoftBank Group Corp. has slashed the firm’s valuation in its books by more than 20%. At the time of filing its DRHP, the company was looking at a valuation of about $10 billion, which has since lowered to $7 billion to $8 billion.
The company is now trying to accelerate the process. It had previously indicated that the re-filing could take up to two to three months.
“We are working on updating all key sections simultaneously. We are keen on refiling the DRHP by the middle of Feb 2023," Oyo’s spokesperson said.
It did not offer any estimate on when expects Sebi’s approval.
In its letter to Oyo, Sebi had asked the hospitality unicorn to update all relevant sections such as risk factors, key performance indicators or KPIs, outstanding litigations, basis for offer, among others.
“The disclosures contained in present DRHP do not take into account the material changes/disclosures arising from Updated financial statements as filed through addendums," Sebi said.
Oyo reported a profit of ₹63 crore for the first half of FY23 as against a loss of ₹280 crore a year ago. Its revenues during April-September 2022 grew 24% year-on-year to ₹2,905 crore.