Skift India Daily: Oyo Reportedly Ready to Slash IPO Size Even Further
Photo Credit: Oyo has been delaying its much-anticipated share sale process because of turbulent market conditions. Skift
Skift Take
Given the lackluster performance of several recent public market debuts in India and volatile market conditions, the Oyo IPO size coming down might be a strategic decision.
Reports suggest that India-based budget hotel operator and aggregator Oyo will be reducing its Initial Public Offering (IPO) size by about two-thirds. The company is likely to file a fresh document for its IPO as soon as this week, according to a Bloomberg report. The company had initially filed to go public in October 2021. In December, India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), had advised Oravel Stays, the parent company of Oyo, to refile the draft prospectus, updating all the relevant sections such as risk factors, key performing indicators, outstanding litigations and basis for offer. 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
