OYO Withdraws DRHP, Plans To Resubmit IPO After $450 Mn Refinancing: Sources

OYO to Refile DRHP, post raising $450M via Bonds at 9-10% Interest.

Expert Analysis:

• DRHP Refiling Planned: OYO plans to refile its DRHP with SEBI to align with upcoming financial changes.

• USD 450 Million Fundraising Initiative: OYO intends to raise USD 450 million through the sale of dollar bonds, facilitated by JP Morgan at a 9-10% interest rate p.a.

• Debt Reduction Through Prepayment: OYO prepaid Rs 1,620 crore through a buyback process, reducing its debt by repurchasing 30% of its USD 660 million Term Loan B.

• Current DRHP Withdrawal: The refinancing will significantly alter OYO's financial statements, prompting the withdrawal of the current DRHP application.

• Revised IPO Valuation Due to Market Conditions: Initial IPO plan was Rs 8,430 crore in 2021, but market volatility led to postponement and a revised valuation of USD 4-6 billion, down from USD 11 billion.