OYO Withdraws IPO Paper; Ixigo Gets Green Flag From Sebi
Oravel Stays, the parent company of Oyo, has withdraws the IPO paper and decides to refinance its USD 450 million term loan at a lower interest rate
Ixigo advanced to the next stage of its initial public offering (IPO) after the Markets regulator Securities and Exchange Board of India (Sebi) has given the go-ahead for the travel booking platform.
The market regulator received a revised draft red herring prospectus (DRHP) from Ixigo, which aimed to raise Rs 120 crore through a new issue and an offer-for-sale (OFS) of up to 66,677,674 equity shares.
Operating under the name Ixigo, Le Travenues Technology, the company brought in Rs 491 crore in revenue during the nine months that ended in December 2023, reporting a profit of Rs 65.7 crore.
Conversely, the major player in the hospitality industry, Oyo withdrew its draft red herring prospectus (DRHP) after failing to receive the Sebi’s Nod.
Oravel Stays, the parent company of Oyo, has withdrawn the IPO paper and decided to refinance its USD 450 million term loan at a lower interest rate, following which it will resubmit its IPO papers with the markets regulator.
The company wanted to issue bonds for USD 350 to 450 million (Rs 2,908.5 crore to Rs 3,739.5 crore) at an estimated interest rate of 9 to 10 per cent annually.
In the first year of the refinancing, the company is anticipated to save USD 8 to 10 million (about Rs. 66.4 to Rs. 83.0 crore) in interest.
Notably, Oyo estimates that it will save around USD 15 to 17 million (about Rs 124.5 to 141.1 crore) a year due to this refinancing measure.
