OYO Withdraws Current DRHP
September 2021: Travel-tech platform OYO, owned by Oravel Stays, filed preliminary IPO documents with the Securities and Exchange Board of India (Sebi) for a Rs 8,430 crore IPO.
OYO Raises $450 Million
The SoftBank-backed global hospitality chain is finalizing its plans to raise $450 million via the sale of dollar bonds. According to the news agency PTI, citing sources, it will refile its draft red herring prospectus (DRHP) with the capital markets regulator Sebi after refinancing.
OYO’s Lead Banker – JP Morgan
JP Morgan, a significant player in the financial industry, is the likely lead banker for the sale of dollar bonds, and will play a key role in OYO’s refinancing.
Oravel Stays Refiles Updated DRHP
Oravel Stays, OYO’s parent company, will refile an updated version of the DRHP after the bond is issued. Before this, it prepaid a significant chunk of its debt, amounting to Rs 1,620 crore, through a buyback process. The buyback involved repurchasing 30 percent of its outstanding Term Loan B of $660 million.
Refinancing Will Result in Material Changes to OYO’s Financial Statements
A source closely involved in the company’s IPO plans told PTI,
“OYO’s strategic decision to withdraw the IPO and pursue refinancing, which is at an advanced stage, will result in material changes to OYO’s financial statements. Hence, as per existing regulations, it must revise its filings with the regulator. Since the decision to refinance is advanced, it doesn’t make sense to continue pursuing IPO approval with the current financials. So, it’s prudent to withdraw the current application.
