According to reports, the Securities and Exchange Board of India has requested the Oravel Stays(Oyo); “to update risk factors, its key performance indicators (KPIs), pending lawsuits, and the basis for valuation in the company’s draft red herring prospectus (DRHP)”.
Country’s market regulator SEBI has the Ritesh Agarwal-promoted Hospitality company Oyo to submit an updated draft leading to the possibility of a delay of a quarter to the Oyo’s initial public offering (IPO). The startup’s IPO was slotted to be launched in the 2023’s first half.
According to reports, the Securities and Exchange Board of India has requested the Oravel Stays(Oyo); “to update risk factors, its key performance indicators (KPIs), pending lawsuits, and the basis for valuation in the company’s draft red herring prospectus (DRHP)”.
According to a market expert familiar with the company said; “However, the chance to update any pertinent information is a “welcome” step, it would only be prudent to expect investors to put in money on the basis of the latest information, and we have been asked to provide the latest disclosures at the appropriate pre-IPO stage. This is the most sensible course of action now. It may also shift the IPO plans by two-three months, but we will be able to show a full financial year of Ebitda profits in the process.”
Oravel Stays provided the market regulator SEBI recently with the financial data for the first half of FY23 via a supplementary filing to the DRHP. It had written to the SEBI that the prospective IPO investors are needed to be informed about the major improvements in business performance since its September 2021 public offering application. But now the market regulator has asked SEBI has asked the Oyo to update the additional information.
