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Oyo pre-files fresh DRHP for primary fundraise of $400-500 million

Hotel aggregator Oyo has pre-filed a fresh draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise $400-500 million through an initial public offer (IPO).

As the confidential pre-filing route gives an option to change the fresh issue size, a source said that the IPO size may be revised within the $400-600 million range. The earlier plan of a secondary sale component in the IPO has been scrapped and the objective of the issue is to repay most of the debt.

Late in 2022, the market regulator returned the DRHP, asking Oyo to refile the prospectus with additional information. Oyo had indicated that the refiling process could take up to two-three months.

The pre-filing route option was allowed by SEBI in November 2022 as part of bringing in progressive and globally popular practices. The option is available in large global markets  such as the US, the UK, Canada, etc.

It offers companies more flexibility on issue size during the initial stage, unlike the traditional route where companies have to launch the IPO within 12 months from the SEBI approval, or final observation. The pre-filing route allows an IPO to be floated within 18 months from the date of SEBI’s final comments.

https://www.moneycontrol.com/news/business/startup/oyo-pre-files-fresh-drhp-for-primary-fundraise-of-400-500-million-10342801.html

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