Oravel Stays, the entity behind the hospitality brand OYO, has officially refreshed its initial public offering plans. The company filed updated draft papers with the Securities and Exchange Board of India, signaling a renewed push to hit the public markets.
The proposed offering is structured as a fresh equity issuance totaling Rs 6,650 crore. Unlike previous iterations that included secondary share sales, this plan focuses exclusively on raising primary capital to bolster the company's financial position.
According to the regulatory filing, the primary objective of the funding is debt reduction. The company intends to utilize the bulk of the proceeds to clear existing borrowings, aiming to streamline its balance sheet before finalizing its listing timeline.
Management is also exploring the possibility of a pre-IPO placement round, which could further adjust the final issuance size. Following the debt repayment, any residual capital will be deployed toward general corporate purposes to support ongoing expansion efforts.
