Hospitality and travel tech brand OYO’s senior executives have recently Securities Exchange Board of India (SEBI) as the company looks forward to expediting its IPO approval by the market regulator.
According to an Economic Times report, OYO officials have informed SEBI about a partial pre-paymenet of outstanding Term Loan B worth $200 million and a positive rating by international rating firms Moody’s and Fitch.
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As per the report, the company’s lead bankers and senior officials updated SEBI with the improvements that were made in OYO’s bottomline and other financial parameters in the last four quarters.
Oravel Stays Ltd, the company which operates OYO, reported a Q3 profit of ₹30 crore, founder and chief executive officer Ritesh Agarwal told employees in a townhall.
The company had reported its second quarter profit of ₹16 crore.
“In the upcoming quarters, we anticipate a consistent rise in PAT, driven by enhanced patron confidence, improved customer experience , and favourable market conditions conducive to sustained growth,” Agarwal was quoted by PTI as saying.
OYO to work closely to address all SEBI queries
As per the ET report, OYO has offered to work closely to timely clear all the queries by the market watchdog
Last year OYO had prepaid ₹1,620 crore debt through a buyback process that involved the repurchase of 30 per cent of the company’s outstanding Term Loan B (TLB).
The IPO-bound firm, in its last public filing, had disclosed that it achieved operational profitability in FY23, clocking an adjusted EBITDA of ₹277 crore.
Earlier, Agarwal had shared with employees that the company had turned cash flow positive in the fourth quarter of FY23.
Last month, Malaysian sovereign wealth fund Khazanah Nasional Berhad was said to be in discussions to lead a $400 million funding round in Oravel Stays, Bloomberg reported.
OYO, backed by Softbank Group Corp, is seeking to raise funds for expansion and cutting debt. Avendus Capital Pvt. is advising the company on the fund raise, the report added.