Sebi returns OYO’s draft IPO papers; asks to refile with updates
The Securities and Exchange Board of India (Sebi) has asked Oravel Stays (Oyo) to refile initial public offering (IPO) papers with applicable updates and revisions as per a notification on its website.
It had reported on Saturday that hospitality chain Oyo’s IPO is likely to be delayed by three months as India’s capital markets regulator has asked the company to update its draft IPO papers. The company had filed its Draft Red Herring Prospectus (DRHP) with Sebi in September 2021 and is aiming to raise Rs 8,430 crore.
The IPO was expected to be launched in the first half of 2023.
While Sebi has not mentioned the reasons for refiling in its notification, sources had told us that Sebi has asked Oyo to update risk factors, its key performance indicators (KPIs), outstanding litigations and the basis for valuation in the company’s draft red herring prospectus (DRHP).
This could delay the proposed IPO by a quarter, as updating the DRHP will take more time, sources said.
In a letter to Oyo, Sebi said disclosures contained in the present DRHP do not consider the material changes and disclosures arising from updated financial statements filed through addendums, leading to revised period for disclosures, which, in turn, requires material updates in risk factors, basis of offer price, outstanding litigations and updates to other relevant sections of the DRHP