The Securities and Exchange Board of India (Sebi) has asked Oravel Stays, the parent company of travel tech firm Oyo, to refile the draft papers for its initial public offering (IPO) with applicable updates and revisions.
The offer document was returned to the company with the said advisory on December 30, according to an update on the regulator’s website on Tuesday. The regulator has not elaborated on the kind of additional information it is seeking, but it may include revisions on basis for valuation, key performance indicators, risk factors and outstanding litigations, according to reports.
This might delay the Gurgaon-headquartered hospitality company‘s IPO by at least three months.
The company had first filed preliminary documents with the regulator in September 2021. The proposed offer was for Rs 8,430 crore, of which up to Rs 7,000 crore was for fresh issue of shares and an offer for sale of Rs 1,430 crore.
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The company had said the proceeds would be utilised for prepayment or repayment, in part, of certain borrowings availed by subsidiaries, funding organic and inorganic growth, and general corporate purposes.
After reports of the IPO plans being put on hold last year, the company filed fresh documents with the updated September financials in a bid to tap the market after measures to cut costs and a recovery in travel helped the company reduce losses.
The company reported an Ebitda (earnings before interest, taxes, depreciation and amortisation) of Rs 63 crore for the April-September 2022 period against a loss of Rs 280 crore a year ago. Revenues during the same period grew 24% year-on-year to Rs 2,905 crore. The company also had a cash component to the tune of Rs 2,785 crore.
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The company’s storefronts have increased to 168,639 as on March 31, 2022, from 157,344 a year ago, driven by organic growth in its homes and hotels business, primarily as a result of the recovery in travel demand. In addition, the company acquired Direct Booker, a vacation homes rental company focusing on European homes, in February last year. It also acquired Bornholmske Feriehuse, a Europe-based holiday homes company, in July. Founder and group CEO Ritesh Agarwal recently said in a tweet that more than 450,000 bookings were made on this New Year’s Eve globally, which is 35% more than last year. Over 750 cities had seen a 50% jump in bookings on December 31, 2022, versus last year. “We are also seeing the highest bookings per hotel per day for India in the last 5 years today,” Agarwal said.