New Delhi
Hospitality and travel-tech firm OYO is looking to launch its initial public offer after September and has written to stock market regulator Sebi, seeking to file updated and restated consolidated financial information.
The company, which had filed preliminary papers with Sebi to raise Rs 8,430 crore through an initial share sale in October last year, is now prepared to settle for a lower valuation of around USD 7-8 billion against the USD 11 billion it was targeting initially, according to people in the know of the development.
OYO’s move to launch the IPO after the September quarter is mainly driven by the expectation of improvement in its financial performance and the current volatile nature of the market, they said.
It is understood that in a letter to Sebi, Oravel Stays Ltd, which runs OYO, has sought permission to include restated financial statements for the six-month periods ending September 30, 2022, September 30, 2021, and September 30, 2020.
Price swings in a newly listed stock create concern among the public. Amongst such sentiments, it will be best to be able to first show to the investors that the business revival is real, it is strong and is leading to much higher bookings and perhaps, the first sign of a positive bottom line. Hence, OYO will likely wait for a quarter, said a person aware of the company’s plans.
When reached out for comments, OYO declined to comment. As per the company’s DRHP (draft red herring prospectus), OYO had incurred a Rs 1,744.7 crore loss in FY21.
