Skift India Daily: Oyo Reportedly Ready to Slash IPO Size Even Further

Reports suggest that India-based budget hotel operator and aggregator Oyo will be reducing its Initial Public Offering (IPO) size by about two-thirds. The company is likely to file a fresh document for its IPO as soon as this week, according to a Bloomberg report. The company had initially filed to go public in October 2021. In December, India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), had advised Oravel Stays, the parent company of Oyo, to refile the draft prospectus, updating all the relevant sections such as risk factors, key performing indicators, outstanding litigations and basis for offer. Oyo’s last submission to SEBI was the updated financial results of the first half of financial year 2022-23. Updating its draft red herring prospectus with results for the first half of the 2023 financial year in November, Oyo had reported that its adjusted earnings before interest, taxes, depreciation, and amortization for the second quarter grew eight times from $860,000 in the first quarter to $7 million primarily driven by a 23 percent quarter-on-quarter rise in gross booking value per hotel. However, speaking at a town hall on Monday, Oyo Founder and Group CEO Ritesh Agarwal told employees that Oyo expects its revenue in the financial year 2023 to be more than $692.5 million, up 19 percent from 2022's $581 million. Agarwal attributed the company's better financials to sustained growth in India, Indonesia, the U.S., and the UK, and relevant optimization and synergies in its European vacation homes business. He outlined that Oyo's key focus areas this year would be on profit after tax along with consistent momentum in earnings before interest, taxes, depreciation and amortization, achieving cash flow positive in financial year 2024, cost efficiency and improving