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.
People familiar with the matter said that SEBI observations are reaching the final stages and the last rounds of observations are expected in about ten days.
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.
ET reported earlier this month that a clutch of buyers, including Qatar Insurance Company (QIC) and a few high net worth individuals and family offices had purchased stakes in Oyo in November and December last year.
The secondary transactions were executed at a price of about Rs 110 per share and included nearly 14.3 million equity shares as well as 2,500 preference shares. The purchases were secondary transactions, with the shares primarily being offloaded by Oyo’s Employee Welfare Trust, which holds them on the behalf of its employees, as a part of its ESOP programme.
Bloomberg reported last week that the company is eyeing a valuation of about $9 billion in its initial public offering after preliminary conversations with potential investors.
Oyo’s founder Ritesh Agarwal, who holds 33% stake in the company directly and through his holding company is not planning to dilute any stake while Softbank Vision Fund, Oyo’s largest investor which holds 46% stake in the company plans to dilute around 2% of his holding.
