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OYO IPO: Oyo will apply again for IPO, know what is the plan of the hotel company
OYO IPO: OYO Rooms, the hospitality chain invested by Japan's SoftBank Group, may soon launch its IPO for which investors have been waiting for a long time. Oyo is close to finalizing its re-financing plan to raise $450 million through the sale of dollar bonds. After this, it will file the updated version of DRHP to get approval for IPO from SEBI.
Hospitality chain OYO Rooms, invested by Japan's SoftBank Group, may soon launch its IPO, for which investors have been waiting for a long time. News agency PTI quoted sources as saying that this global travel tech company is very close to finalizing its re-financing plan to raise $450 million through the sale of dollar bonds. JPMorgan is the potential lead banker for the refinancing through the sale of dollar bonds at an expected annual interest rate of 9 to 10 percent.
Oyo has already requested to withdraw its current draft red herring prospectus (DRHP) from market regulator SEBI. First, the company wants to re-finance in order to strengthen its financial position. Next, it will submit the revised DRHP file to SEBI. A company's financials, trading activities, industry standing, promoters, and listed or unlisted traders are all detailed in the document known as the DRHP.
DRHP provides a general explanation of the company's goals and the reasons behind its desire to raise capital through an initial public offering (IPO). It also contains details on the types of risks associated with the investment. Such as whether the business is profitable or losing money, and whether it is involved in any legal issues. By assessing all these things, it becomes easier for investors to decide whether they should invest money in an IPO or not.
OYO's parent company Oravel Stays Ltd had prepaid a large part of its debt of Rs 1,620 crore through the buyback process in November. Now its outstanding loan has been reduced to about $450 million.
