Why Did SEBI Reject OYO’s IPO Documents?

The most awaited Initial Public Offering(IPO) of Oravel Stays, a parent company of OYO Rooms, will be delayed. It may hit the market in the last quarter of this calendar year. OYO presented the documents to file the IPO worth $1.2 Billion back in December 2022, but the Stock Exchange Board of India (SEBI) rejected it and asked them to refile DRHP with revisions. At this stage, investors can only buy or sell OYO unlisted shares with the help of trading platforms.

The IPO of OYO, which was expected to launch between April and July 2023, is delayed now. According to the sources, SEBI advised Oravel Stays to refile the IPO with updates and revisions. In this post, we share the reasons behind why SEBI rejected OYO IPO documents.

Reasons Behind OYO’s IPO Rejection By SEBI

Investors who were eagerly waiting for OYO’s upcoming IPO may not understand the reason behind the rejection. As SEBI stated on its website, it asked OYO to refile with updated information like key performance indicators, material disclosures, risk factors, and parameters for offer pricing. It will definitely impact the OYO IPO share price when they launch their IPO.

Here are the reasons behind the rejection of OYO’s IPO by SEBI:

• At the time of submitting the documents for IPO, the company didn’t disclose the actual issue size. In 2021, OYO rooms planned to raise fresh funds of Rs 8,430 crore and issue equity shares worth Rs 7000 crore. During this, the offer’s value for the sale of its equity was Rs 1,430 crore. Moreover, the company didn’t mention the retail investors’ estimated OYO room share price.
• Before that, OYO had already filed multiple addendums to the DRHP last year. SEBI also reviewed the recent funding they raised for the IPO. To reduce the cash burn and mitigate risk, OYO decided it. In addition, there is no exact figure disclosed by the company on their EBITDA, profitability, and operating revenue. It is the reason why SEBI asked OYO to refile the documents with suggested revisions and updates.
• Zostel, a hospitality startup, wrote a letter to SEBI to reject or suspend OYO’s IPO. In the letter, Zostel claims around 7% of stakes in OYO and demands rejection of the IPO. There has been an ongoing dispute between Zostel and OYO since 2016 about the equity shares. However, it is unclear that SEBI rejected OYO’s IPO due to Zostel’s request.

OYO shares perform well in the market and attract potential investors. Its unlisted share price remained high and offered good returns. In addition, OYO revenue is estimated to be $751 million by the end of 2023 that makes it worth investing. There is no doubt that OYO shares will bring enormous benefits in the coming years for investors.

OYO Unlisted Shares At Stockify

OYO is one of the leading technology-driven hotel booking platforms that provide a high-quality hospitality ecosystem globally. Since its IPO will hit the market in 2023, the demand for OYO unlisted shares is already rising. The company has not released an exact figure about OYO rooms share price. It is an unlisted company and offers Pre-IPO stocks for retail and institutional investors. 

If we look at the current value of OYO share price, it largely depends on the market conditions and keeps changing. At Stockify, we update OYO rooms share price regularly and provide our customers with a wide range of data.

Here is the detail of OYO unlisted shares:

You will find more details of the OYO rooms share price on our website. We have detailed data on company financials and performance that helps you make the right investment decision.

Check OYO Unlisted Share Price

Are you looking for a place that updates you about the current price of unlisted shares?

Stockify is the best unlisted share broker in India, with an availability of a wide range of top-performing unlisted shares. The updated OYO share price is Rs 65 with a debt-per-equity ratio of 4.9 and a return on equity of -127.4 per cent. 

Buy OYO Unlisted Shares On Stockify

Have you decided to invest in OYO unlisted shares? Since OYO’s IPO will launch in 2023 with revisions and updates. The company has not disclosed the exact date and OYO IPO share price. You can easily buy unlisted shares and take extra advantage of being its retail investors. It will diversify your investment portfolio and allow you to make smart investing decisions whenever OYO launches its IPO. 

At Stockify, you will receive access to OYO and other unlisted companies’ shares. Our team shares detailed data on the company’s market performance by using metrics like EBITDA, PAT, operating revenue, and many more. Invest early in OYO unlisted shares and make good returns.