IPO-bound OYO to submit updated DRHP to SEBI in February

Hospitality tech start-up Oravel Stays which owns OYO is all set to refile and submit its Draft Red Herring Prospectus (DRHP) with the stock market regulator Securities and Exchange Board of India (SEBI) by mid-February, according to a spokesperson of the company.

Business Today had earlier reported that the market watchdog wrote back to the company asking it to update additional sections in its DRHP, such as updated risk factors, key performance indicators (KPIs), outstanding litigations, basis for valuation etc. This was supposed to delay the initial public offering (IPO) by a quarter or so.  
 
Sharing the progress on the DRHP updates, an OYO spokesperson said, “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 DRHP by the middle of Feb 2023, if not earlier.”

The spokesperson refused to share the estimated time it will take for SEBI to give the approval once the DRHP is submitted. However, a source familiar with the development told BT that the company hopes to get the approval by April 2023.

After weathering two tough years owing to the COVID-19 pandemic, the company revived its stock market plans this year. In September, the company filed an addendum to its DRHP which revealed its financials for FY20, FY21, and FY22. Recently, the company also announced its financial results for the ongoing fiscal year, which saw the revenues in H1 of FY23 grew 24 per cent to Rs 2,905 crore. OYO also reported a 69 per cent increase in its gross booking values (GBV). GBV is the monthly revenue the company earns per hotel.  

However, the tech start-up also reported a net loss of Rs 333 crore in the second quarter of FY23. OYO was launched in 2012 by Agarwal. OYO is backed by the likes of Microsoft, SoftBank Vision Fund, Lightspeed Venture Partners, Sequoia Capital India, and others.