Softbank-backed hotel aggregator Oyo's parent Oravel Stays Limited filed a request for exemption late last month, according to information available on market regulator SEBI's website.
The request is under process according to the posting on the website, which did not provide details on the type of exemption sought.
People familiar with the development told Moneycontrol that Oyo is seeking SEBI's permission to file an updated draft prospectus instead of a new one, as there are material changes since it initially filed for an IPO late last year.
"When a firm files the DRHP, the financials shouldn't be more than six months old. Oyo has also slashed the size of its issue, from the initial over Rs 8,430 crore it sought to file," one of the persons cited above said.
A second person said the company is planning to go ahead with the Rs 7,000 crore primary issue, doing away with the Rs 1,430 crore offer for sale (OFS) component altogether.
These factors necessitated a request for exemption from the market regulator, these persons said.
Earlier, Bloomberg reported that Oyo is considering slashing its fundraising target by half or even shelving the debut. Oravel Stays could clip its Indian IPO from the nearly $1 billion initially sought to half of that amount.
In October last year, Oyo filed draft papers with SEBI. Nearly six months later the firm has yet to get a green light from the stock market regulator.
Currently, SoftBank Group owns 46.62 percent, Grab 1.81 percent, Huazhu Hotels 0.81 percent, and the Munjal family 0.04 percent in the firm. Founder Ritesh Agarwal holds an 8.21 percent stake, while an affiliate promoter firm, RA Hospitality Holdings Cayman, holds 24.94percent.
The proceeds from the issue worth Rs2,441 crore will be used to retire debt owed by its subsidiaries Oravel Stays Singapore Pte Ltd, Oravel Hotels LLC and Oyo Hospitality Netherlands BV and Oyo Singapore and OHL. As of July, the firm had total outstanding borrowings of Rs4,890.56 crore on a consolidated basis. The company plans to use Rs 2,900 crore for funding organic and inorganic growth.
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