IPO bound Oyo has received in-principle approval from both the Indian stock exchanges NSE and BSE to list on the respective bourses subject to adequate disclosures to be made in the offer document. The company had filed its Draft Red Herring Prospectus (DRHP) with Securities & Exchange Board of India (SEBI) in September last year and is aiming to raise Rs 8,430 crore, including a primary issuance of Rs 7,000 crore. As per the procedure, the company would file the updated draft prospectus in line with the final observations and will await approval for the final prospectus that becomes the final document for the company to formally approach the public investors with its issue offering. The company may be looking at reprising its valuation to around $9 billion in a sign that the markets are repricing new economy consumer tech firms to more sensible levels.
Oyo’s move to file a revised prospectus comes amid questions on whether it will be able to go ahead with a listing in the current environment. Stocks of loss making internet companies have seen intense selling pressure in India and the US, as investors turn cautious.