Hotel chain start-up Oyo is considering withdrawing its initial public offer (IPO) from the Securities and Exchange Board of India (SEBI). The Economic Times reported citing its sources. The company had filed a draft application for an IPO in October 2021 for over $1 billion.

The report added that Oyo was in the discussion to withdraw the papers and now has conveyed all the stakeholders about the move. The Gurugram-based company is in talks with private market investors to raise new funds over the next six to eight months.

Oyo responded to queries from the ET, stating that the information is inaccurate and has not been officially confirmed by the company.

The company's initial public offering (IPO) filing was returned by SEBI in January 2023, prompting the company to refile the draft red herring prospectus (DRHP) with updates and revisions. Sebi requested additional updates in sections such as risk factors, key performance indicators (KPIs), outstanding litigations, and basis for valuation. Following this, Oyo made a confidential pre-filing with Sebi for a smaller-sized IPO. The company was expected to be listed later in the year, around Diwali.

Meanwhile, former SBI Chairman Rajnish Kumar concluded his role as group strategic advisor at Oyo in December 2023, as his contract came to an end.

A few days back, the company's founder and CEO, Ritesh Agarwal informed the employees in a town hall meeting that he expects a consistent increase in Profit After Tax (PAT) after doubling it sequentially in Q3 FY24 to Rs 30 crore. He also said that the company has recorded a two-fold increase in profit.

Agarwal informed that the company has achieved an adjusted EBITDA of Rs 750 crore in FY23 and expects to reach an adjusted EBITDA of Rs 1,000 crore in FY24, surpassing its earlier projection of Rs 800 crore for FY24.