IPO-bound OYO gets approval to list on BSE, NSE

Oravel Stays Limited, the parent company of travel-tech firm OYO, has received in-principle approval from BSE and NSE to list on the respective bourses, sources said.

OYO has filed preliminary documents for a Rs 8,430 crore initial public offering (IPO). The offering will consist of a fresh issue of shares of up to Rs 7,000 crore and an offer-for-sale of as much as Rs 1,430 crore.

As per documents reviewed by PTI, the company recently received the go-ahead for listing from the National Stock Exchange and BSE.

Bourses typically provides such go ahead at advanced stages of the approval process thus signaling that regulatory path is close to getting cleared for the company to approach for its listing.

The company had filed its Draft Red Herring Prospectus (DRHP) with Securities & Exchange Board of India (SEBI) in September last year and has been in the process of responding to the questions and clarifications sought by the regulators.

Sources told PTI that the SEBI observations are reaching the final stage and the last rounds of observations are expected in about 10 days.

As per process, the company would file the updated draft prospectus in line with the final observations and await approval for the final prospectus which becomes the final document for the company to formally approach public investors.

According to sources, OYO's founder Ritesh Agarwal, who holds 33 per cent stake in the company directly and through his holding company, is not planning to dilute any stake during the IPO process, while Softbank Vision Fund, OYO's largest investor which holds 46 per cent stake in the company, plans to dilute around 2 per cent of his holding.