A source told Reuters that Softbank-backed hotel aggregator Oyo has submitted confidential “pre-filing” paperwork for a probable scaled-back initial public offering.
The business had intended to go public in 2021 with an IPO size of 84.3 billion Indian rupees ($1.02 billion), but postponed the share offering.
According to the source, Oyo is now looking for an IPO size between $400 million and $600 million. The secret filing option offers the firm the freedom to adjust the amount of the issue until an updated file is made with the market regulator.
A representative of Oravel Stays, the company’s formal name, declined to comment.
Oyo, founded by Ritesh Agarwal in 2013, has lately cut off staff at a time when the values of soaring digital firms have plummeted.
In the meanwhile, a small number of Indian companies have postponed or abandoned their IPO ambitions owing to unfavorable market circumstances.
Reuters reported on Monday that skincare firm Mamaearth delayed its IPO, a month after garment retailer Fabindia and jewelry shop Joyalukkas made similar decisions.
In an effort to protect the sensitive business information of firms, the Securities and Exchange Board of India (SEBI) established the secret pre-filing option last year.
In India, firms normally submit a draft prospectus containing regulatory disclosures to SEBI, which is also made available for public discussion for at least 21 days.
After integrating regulatory and other input, the final prospectus is resubmitted for approval.