Marriott International announced 13 deal signings in Turkey comprising over 2,000 rooms.
25.08.2023 - 14:23 / skift.com / Peden Doma Bhutia
Keen to pursue its long-anticipated initial public offering (IPO), hospitality tech company Oyo has said it would be refiling its draft red herring prospectus with the Indian stock market regulator Securities Exchange Board of India (SEBI) by mid-February.
While the company refused to offer any estimation of the time it expects SEBI to take for the approval, a source close to the company said Oyo hopes to get the approval by April 2023.
“After the approval comes in, Oyo will gauge market conditions and the path to profitability and then decide on launching the IPO,” the source said speaking to Skift.
Asked to hint at a timeline for the launch of the Oyo IPO, the source said it would well be within this year.
The market regulator had on December 30 asked Oyo to refile the draft prospectus, updating all the relevant sections such as risk factors, key performing indicators, outstanding litigations and basis for offer.
The company had earlier indicated that the process of refiling the document could take up to 2-3 months.
Oyo’s last submission to SEBI was the updated financial results of the first half of financial year 2022-23.
Updating its draft red herring prospectus with results for the first half of the 2023 financial year in November, Oyo had reported that its adjusted earnings before interest, taxes, depreciation, and amortization for the second quarter grew eight times from $860,000 in the first quarter to $7 million primarily driven by a 23 percent quarter-on-quarter rise in gross booking value per hotel.
The letter from the market regulator to Oyo read, “The disclosures contained in the present draft red herring prospectus do not take into account the material changes/disclosures arising from updated financial statements as filed through
addendums leading to revised period for disclosures which in turn leads to necessities to make material updates in risk factors, basis of offer price, outstanding litigations and update other relevant sections of the prospectus.”
Sharing the progress on the refiling exercise, an Oyo spokesperson said, “We are working on updating all key sections simultaneously. Responsibilities have been divided among different teams,
with senior company leaders driving the collaboration with the book running lead managers, essentially the initial public offering bankers, the lawyers and the auditors. We are keen on refiling the draft prospectus by mid February if not earlier.”
The Indian market regulator’s move seems to be in line with its expectation of higher levels of transparency in the initial public offering process.
Lately, it has asked companies to share additional key performing indicators and the basis for pricing of IPOs. In its meeting with bankers in December 2022,
Marriott International announced 13 deal signings in Turkey comprising over 2,000 rooms.
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