IPO-bound OYO gets in-principle listing approval from BSE, NSE
- IBEF
- January 27, 2022
According to sources, Oravel Stays Limited, the parent company of travel-tech business OYO, has received in-principle approval to list on the BSE and NSE. OYO has filed preliminary filings for an initial public offering (IPO) of Rs 8,430 crore (US$ 1.12 billion). The offering will include a fresh issue of up to Rs 7,000 crore (US$ 931 million) in shares and a Rs 1,430 crore (US$ 190 million) offer-for-sale.
The company has gained approval for listing from the National Stock Exchange and the BSE, according to documents reviewed by PTI. Typically, bourses grant such permission at advanced stages of the approval process, indicating that the regulatory path is close to being cleared for the business to pursue a listing.
The company submitted its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in September of last year and is currently responding to the regulators' inquiries and clarifications. The SEBI observations are nearing the end, according to sources, and the final rounds of observations are likely in around ten days.
As part of the procedure, the firm will file a revised draught prospectus in accordance with the final observations and wait for approval of the final prospectus, which will serve as the company's final document for approaching public investors. According to sources, OYO's founder Ritesh Agarwal, who owns a 33% stake in the company directly and through his holding company, has no plans to dilute any of his shares during the IPO process, while Softbank Vision Fund, the company's largest investor, plans to dilute around 2% of his stake.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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