Ritesh Agarwal-led OYO Seeks SEBI's Approval for IPO Acceleration

OYO, the hospitality and travel tech giant led by Ritesh Agarwal, has approached the Securities Exchange Board of India (SEBI) once again, aiming to expedite the approval process for its Initial Public Offering (IPO).

In a recent interaction with SEBI, senior executives from OYO highlighted the partial pre-payment of a $200 million outstanding Term Loan B and positive credit ratings from international agencies Moody's and Fitch, as reported by Economic Times.

Oravel Stays Ltd, the operating entity for OYO, revealed a Q3 profit of ₹30 crore, a significant improvement from its ₹16 crore profit in the previous quarter. Founder and CEO Ritesh Agarwal, in a townhall with employees, expressed optimism for consistent profit growth in the upcoming quarters. He attributed this expected growth to increased patron confidence, enhanced customer experience, and favorable market conditions.

OYO is committed to addressing SEBI's queries promptly, offering to collaborate closely with the market regulator. Last year, OYO repaid ₹1,620 crore in debt through a buyback process, involving the repurchase of 30% of the outstanding Term Loan B. The company achieved operational profitability in FY23, disclosing an adjusted EBITDA of ₹277 crore in its last public filing. Ritesh Agarwal informed employees that the company turned cash flow positive in the fourth quarter of FY23.

In recent developments, Malaysian sovereign wealth fund Khazanah Nasional Berhad is reportedly in discussions to lead a $400 million funding round for Oravel Stays. OYO, backed by SoftBank Group Corp., aims to raise funds for expansion and debt reduction, with Avendus Capital Pvt. advising on the fundraising efforts.