Oravel Stays Ltd, the company behind the brand OYO, has denied any discussions about withdrawing its IPO papers from the Securities Exchange Board of India. Ritesh Agarwal, the company’s CEO, clarified that there were no such talks taking place. According to reports, the company is also in talks with private market investors to raise additional funds in the next six-eight months.
The market regulator had returned the IPO filing by OYO in 2023, requiring the company to refile its draft red herring prospectus with updates and revisions. Subsequently, OYO made a confidential pre-filing with SEBI for a smaller-sized IPO. It was asked to refile applications with a smaller secondary share sale portion than initially planned.
SoftBank owns 46% of the company, while Ritesh Agarwal holds a 33% stake. Lightspeed and Peak XV Partners are among its other investors. It was also reported that former SBI chairperson Rajnish Kumar, who was serving as a strategic advisor to the company, has left after his contract ended last December.
Ritesh Agarwal informed the staff that the company doubled its profit after tax in the third quarter to ₹30 crore. OYO had its maiden profitable quarter in Q2 FY24 with a PAT of ₹16 crore. Agarwal also projected a consistent rise in PAT in the upcoming quarters, driven by enhanced patron confidence, improved customer experience, and favorable market conditions conducive to sustained growth.
The company has also reported adjusted EBITDA of ₹750 crore in FY23 and expects to reach ₹1,000 crore in FY24, surpassing its earlier projection of ₹800 crore for FY24.
This clarification comes amidst ongoing discussions about OYO’s plans for its initial public offering and its financial outlook for the future. OYO continues to make strategic moves to ensure its long-term success and growth in the market.
