OYO delays IPO by a quarter; SEBI is asking for additional information on risk factors, KPIs and litigation

Hospitality tech start-up Oravel Stays, which aimed to make its IPO in the first half of 2023, will delay its IPO by a quarter, a source told Business Today. The source said that the market watchdog, the Securities and Exchange Board of India (SEBI), wrote back to the company asking it to update additional sections in its Draft Red Herring Prospectus (DRHP), such as: B. updated risk factors and key performance indicators (KPIs), open legal disputes, assessment bases, etc.

“This would delay OYO’s proposed IPO plan by approximately three months as it would take additional time to complete the DRHP update and updated filings,” the source said. The company, led by Ritesh Agarwal, is also committed to “providing all most recent disclosures at the appropriate pre-IPO stage.”

The company declined to comment on the matter.

The updated information will also revise the basis of the offer price and other sections of the DRHP. The processing time for gathering the supplementary information and filing will take at least a quarter, which would delay the IPO.

After enduring two difficult years due to the COVID-19 pandemic, the company has revived its IPO plans this year. In September, the company filed an addendum to its DRHP disclosing its financials for fiscal 20, 21 and 22. Recently, the company also announced its financial results for the current fiscal year, in which revenue increased by 24 percent to Rs 2,905 crore in the first half of FY23. OYO also reported a 69 percent increase in its Gross Book 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 by Agarwal in 2012. OYO is backed by companies like Microsoft, SoftBank Vision Fund, Lightspeed Venture Partners, Sequoia Capital India and others.

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