According to reports, Oravel Stays, the company that runs the hotel chain Oyo with its headquarters in India, has resubmitted its draft red herring prospectus (DRHP) for pre-filing in order to launch an initial public offering (IPO) in November.
Depending on the state of the market, the SoftBank-backed company plans to raise between $400 million and $600 million, according to sources.
The sum is less than half of the US $1.2 billion that Oyo had originally planned to raise when it applied to list in India in October 2021. Due to the unstable market, it was ultimately postponed.
However, the pre-filing option gives Oyo the freedom to modify the size of the primary issue by up to 50% until the updated DRHP stage. Accordingly, its IPO size might be up to US $900 million.
The company’s cash flow has reportedly improved, and its “reliance on external funds has gradually decreased over time,” according to remarks made by Oyo founder and group CEO Ritesh Agarwal during an employee town hall earlier this week.
Oyo anticipates revenue for the end of the financial year 2023 of about US $693 million, an increase of 19% from FYE 2022.
The company underwent a restructuring in December 2022 that resulted in the termination of close to 600 employees. Additionally, it reduced operations in China and the US in order to concentrate on Europe, Southeast Asia, and India.
