Oravel Stays Limited’s reported 33.5 billion-rupee ($354.65 million) IPO issue would halve its June proposal, though the latest public issuer and Securities and Exchange Board of India (SEBI) materials reviewed still show the larger plan.
Reuters reported the revised amount on Oct. 22, citing a filing. Press Trust of India (PTI) had reported two days earlier, citing people familiar with the plan, that Oravel was targeting the smaller issue. Oravel Stays is the company behind PRISM and Oyo Hotels.
SEBI’s public-issues page lists the company’s Updated Draft Red Herring Prospectus-I on June 30; the document is dated June 29. It proposed a fresh issue of up to 66.5 billion rupees, with no sale of shares by existing shareholders.
The June prospectus earmarked 49.875 billion rupees of net proceeds for repaying or prepaying borrowings, with the balance for general corporate purposes. Those figures describe the June proposal; the reported issue is smaller.
PTI reported that people familiar with the plan tied the lower fundraising need to stronger cash generation and an improving balance sheet. A person familiar with the matter told PTI that Oravel expected cash from its business to cover the debt still outstanding over the next two to three years.
EconoTimes previously covered the June filing and reports of a smaller IPO target. Reuters also reported that Oravel first sought an IPO valuation of up to $12 billion in 2021, revived its plans with a confidential filing in March 2023 and postponed the offering for a third time in May.
Moneycontrol reported that November was being considered as a possible launch window. A source told the outlet that no timing decision had been made and that the schedule would depend on regulatory approvals, market conditions and other factors.
