OYO is likely to raise its next round of funding soon.The hotel chain operator is working on a refinancing plan to bring significant changes to the financial statements of the company. The company had first filed draft IPO papers with SEBI in September 2021.The parent company of OYO Hotels and Homes, Oravel Stays Ltd, has withdrawn its draft papers for the initial public offering (IPO) filed with SEBI.According to reports, the OYORooms operator withdrew its draft papers for the public issue on May 17. This is the second time the company shelved its plans to go public since filing the draft papers with the Securities and Exchange Board of India (SEBI) in September 2021, for the first time.The company is having meetings with investors for a new round of funding at a lower valuation of $2.3 billion (around Rs 19,151 crore), reports suggested.According to experts, the company wants to take care of its balance sheet through refinancing. They target to raise $350 to $450 million (approximately Rs 3,747 crore) through bonds. However, officially the company has not made any statement on withdrawing the IPO application.The company is working on a refinancing plan to bring significant changes to the financial statements. As per the rules, OYO will have to revise its filings.Reports, quoting sources, suggested that the decision to continue with the IPO approval with the present financial position may not seem viable as the company is still working on a refinancing plan. The hotel aggregator may resume the IPO process after the issuance of bonds to raise the next round of funding.In February, the company had $200–$250 million (around Rs 2,081 crore) in its bank account as it reduced its operating expenses. SoftBank is the largest investor in OYO. Earlier, they reduced the valuation of OYO from $3.4 billion (Rs 28,311 crore) to $2.7 billion (Rs 22,482 crore). The company owns 46% stake in OYO.SoftBank was the prompter during the first draft IPO filing by OYO. Other important investors include Peak XV, formerly known as Sequoia Capital India, and Lightspeed.Business DeskA team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings …Read More



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