Ritesh Agarwal-led OYO likely to go for public listing in Oct-Nov 2023

Travel tech company OYO is looking to get listed on the stock market during the Diwali season, sources have told Business Today. People familiar with the development told BT that the Ritesh Agarwal-led company is aiming to get listed in either October or November this year.

In addition, the hotel aggregator has chosen the confidential route in a recent development. The only company to do so till now is Tata Play, which became the first Indian firm to opt for it after market regulator Securities and Exchange Board of India (Sebi) introduced the mechanism in October last year.

Companies can use the 'confidential' route to file documents with Sebi and stock exchanges without making them public during an initial review period. This allows sensitive information to be withheld for a longer period of time.

Under this regime, sources also told BT that the IPO-bound company has revised the issue size to $400-600 million and this might increase by 50 per cent depending on the market scenario in the next six months. 

The option to delay the IPO or increase the price are possible while taking the ‘confidential’ route.

 The sources also noted that some investors of the company might exit post IPO although nothing is confirmed on these matters. The Gurugram-based company is backed by marquee investors such as SoftBank, Lightspeed India, Didi Chuxing, Airbnb, among others. 
 
OYO declined to comment on the queries sent by BT.
 
Earlier this week, Bloomberg reported that OYO will reduce its IPO size by two-thirds with tech valuations plunging amid worsening global macroeconomic conditions. 
 
In December last year Business Today reported that the company which was planning to make its stock market debut in the first half of 2023, will delay the IPO by a quarter, as the market watchdog has written back to the company asking it to update additional sections in its Draft Red Herring Prospectus (DRHP), such as updated risk factors, key performance indicators (KPIs), outstanding litigations, basis for valuation etc.  
 
BT also reported that the company is expecting to close its adjusted EBITDA (for second half of FY23) at Rs 185 crore, which is a 3x increase from H1 (Rs 63 crore). In FY22, OYO reported a net loss of Rs 1,851 crore against Rs 4,905 crore of revenue.

Also Read: Ola Electric sells over 27,000 EVs in March 2023, 2 lakh EVs in FY23