SoftBank-backed Oyo reportedly pre-files DRHP with Sebi, reduces IPO size to $400 mn-$600 mn

SoftBank-backed Oravel Stays, which operates hospitality tech startup Oyo Hotels, has pre-filed its Draft Red Herring Prospectus (DRHP) with market regulator Sebi under the confidential pre-filing route, said a report on Friday.

The issue size has likely been reduced to $400-600 million all of which will be a primary issuance to repay most of its debt, reported Economic Times citing sources.

Earlier this week, Bloomberg reported that Oyo will reduce its IPO size by two-thirds with tech valuations plunging amid worsening global macroeconomic conditions. 

SoftBank holds about half of the startup. The confidential filing option, introduced by Sebi last year, would give the company flexibility on the size of its share issue and the timing of the IPO, the source said.

In January, Oyo was asked by the Securities and Exchange Board of India (Sebi) to update additional sections in its DRHP, such as updated risk factors, key performance indicators (KPIs), outstanding litigations, basis for valuation etc. Quoting a company source, Reuters said Oyo aims to list later this year, closer to Diwali.

OYO was launched in 2012 by Ritesh Agarwal. OYO is also backed by the likes of Microsoft, Lightspeed Venture Partners, Sequoia Capital India, and others.