The parent company of OYO, Oravel Stays, has approved the conversion of OYO from a private limited company to a public limited company. According to the statement and regulatory filing, subject to receipt of any necessary approvals from any government, statutory or regulatory authority, the name of the company be and is hereby changed from Oravel Stays Private Limited to Oravel Stays.
The company aims at listing the equity shares on stock exchanges, so that the shareholders get a formal marketplace for dealing with equity shares.For this purpose, the company proposes to undertake an initial public offering, it added.
“In order to undertake the offer, the status of the company is required to be changed from a private company limited by shares to a public company limited by shares,” the filing said.
According to sources,OYO is likely to file its draft red herring prospectus (DRHP) with Sebi in the next few months and for public listing it seems OYO will be taking the last significant permission from the Ministry of Corporate Affairs, to enable OYO to apply to markets regulator Sebi an application.
The sources said that OYO has initiated discussion with investment banks like JPMorgan, Citi and Kotak Mahindra Capital to manage its $1.5-billion public issue, slated to raise $1.2-1.5 billion at a valuation range of $14 to 16 billion.