OYO IPO Gets Approval: Travel technology company OYO, although parent company Oravel Stays Limited, has received n-principle approval from the Bombay Stock Exchange, or BSE, and the National Stock Exchange, or NSE, to launch its IPO. Oyo’s IPO plans to raise Rs 8,430 crore through the sale of its shares, which will be offered to investors later this month. According to reports, this approval to be on the list is subject to sufficient information to be made by Oyo in the offer memorandum. The company plans to file a revised draft prospectus with the Securities and Exchange Board of India (SEBI) as it moves forward.
The initial public offering, or IPO, of Oyo will consist of a new share issue of up to Rs 7,000 crore and an offer for sale of a whopping Rs 1,430 crore. If all goes according to plan, Oyo’s IPO can be expected soon.
According to documents reviewed by the PTI news agency, the company was recently given the green light to list on the National Stock Exchange and BSE. Bourses typically offers such approval in advanced stages of the approval process, indicating that the regulatory path is about to be cleared for the company to approach for listing.
The company had submitted its Draft Red Herring Prospectus (DRHP) to the Securities & Exchange Board of India (SEBI) last September and is in the process of answering the questions and clarifications requested by regulators, sources told PTI.
The SoftBank-backed start-up, according to a report by Moneycontrol, to file a revised Draft Red Herring Prospectus (DHRP) comes amid a stock market crash, both globally and in India. On Monday, food delivery chain Zomato, e-commerce platform Nykaa and PB Fintech had all seen a sharp drop in their stock prices amid a Dalal Street carnage. It should be noted that all these companies released their IPOs last year and had excellent quotations.
Oyo had submitted its draft documents to the market regulator Securities and Exchange Board of India (SEBI) in September last year for its IPO. According to an Economic Times report, SEBI observations related to Oyo’s IPO are in the final stages and the final round of observations will take place in 10 days.
According to a Bloomberg report, after initial talks with potential investors, the company is looking at a valuation of $9 billion after the IPO. According to an ET report last month, companies such as Qatar Insurance Company (QIC) and a few high net worth individuals and family offices had bought shares of Oyo in November and December last year.
In 2021, Oyo also received a $5 million investment from Microsoft Corp. Kotak Mahindra Capital, JP Morgan and Citi are the bankers advising Oyo on the IPO, a source told media.
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