The Securities and Exchange Board of India (SEBI) has asked Oravel Stays Ltd, the parent company of travel-tech firm OYO, to refile the draft IPO papers with certain updates.

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According to a update with Sebi’s website, the capital markets regulator returned the travel-tech firm’s draft red herring prospectus (DHRP) on 30, December 2022 and has asked the firm to refile it with applicable updates/revisions, in which the regulator has not mentioned about the required updates.

As per reports, the Gurugram-based hospitality company had filed an addendum to its DHRP that included its financials for the first half of FY23. It reported a profit of INR 63 crore for the first half of FY23 as against a loss of INR 280 crore a year ago.

The unicorn had filed preliminary documents with Sebi in September 2021 for INR 8430 crore IPO and the proposed offering consisted of a fresh issue of shares up to INR 7000 crore and an offer-for-sale of INR 1430 crore. Oyo was targeting an early 2023 and under the current condition, it is expected to delay Oyo’s IPO.

According to the filing shown to Sebi, the firm’s revenues in the first half (April-September) of FY23 grew 24% year-on-year to INR 2,905 crore. Apart from improving operating performance, the company has a cash corpus of INR 2785 crore.

In a letter to Oyo, Sebi said disclosures contained in the present DRHP do not consider the material changes and disclosures arising from updated financial statements filed through addendums, leading to revised period for disclosures, which, in turn, requires material updates in risk factors, basis of offer price, outstanding litigations and updates to other relevant sections of the DRHP, according to an ET report, citing sources aware of this matter.