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  3. OYO Withdraws DRHP, Plans To Resubmit IPO After $450 Mn Refinancing: So…

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

18 May 2024

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Key Takeaways

  • Strategic Refinancing to Raise USD 450 Million:

    • Oravel Stays is refinancing to raise USD 450 million via dollar bonds at 9-10% interest.

  • Debt Reduction Efforts:

    • Prepaid Rs 1,620 crore to reduce debt, enhancing financial stability.

  • Updated DRHP Submission Planned:

    • OYO will withdraw the current DRHP and submit an updated version post-bond issuance.

  • Revised IPO Valuation:

    • Initial Rs 8,430 crore IPO plan was postponed; new valuation expected at USD 4-6 billion, down from USD 11 billion.

  • Positioning for Financial Robustness:

    • Strategic restructuring aligns OYO with revised market conditions, improving financial health and positioning for a stronger future.

  • Strategic Refinancing to Raise USD 450 Million:

    • Oravel Stays is refinancing to raise USD 450 million via dollar bonds at 9-10% interest.

  • Debt Reduction Efforts:

    • Prepaid Rs 1,620 crore to reduce debt, enhancing financial stability.

  • Updated DRHP Submission Planned:

    • OYO will withdraw the current DRHP and submit an updated version post-bond issuance.

  • Revised IPO Valuation:

    • Initial Rs 8,430 crore IPO plan was postponed; new valuation expected at USD 4-6 billion, down from USD 11 billion.

  • Positioning for Financial Robustness:

    • Strategic restructuring aligns OYO with revised market conditions, improving financial health and positioning for a stronger future.

oyo unlisted shares

Oravel Stays (OYO Rooms)

DRHP filed4.44%

Expert Analysis

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.

Publisher:Business World