OYO IPO: Tech company Oyo, which provides travel and hotel booking services across the country, took a big decision amid the bad situation and increasing controversies that it will cut the size of its IPO. Because in this present time Oyo company is running in loss. In such a situation, Oyo has decided to reduce the shares which it aims to sell by about two-thirds through the stock-market debut. Because the valuation of tech companies has decreased due to rising inflation in the country, companies have expressed concern about recession.
In this case, people say that the once high-flying company is preparing to present a new proposal soon this week. Common customers will not be able to invest in this IPO. Oyo will basically plan to sell only one-third of the new shares, which will reduce the amount of new money it will receive. Explain that no shares will be offered for sale by the existing investors of Oyo to the general public.
Why is SEBI showing strictness
Let us tell you that SEBI had recently asked some companies to submit IPO documents again with new updates. SEBI has now started showing strict stance before approving any IPO. Because according to experts, investors who put money in the IPO of some companies have suffered huge losses. After which SEBI has returned the documents of many companies including Oyo.
Documents of these companies were returned
Apart from OYO, the companies whose draft documents have been returned include Go Digit General Insurance Ltd, Indian mobile maker Lava International, B2B payments and service provider Paymate India; Fincare Small Finance Bank India and Integrated Services Company BVG India are included. These 6 companies had submitted IPO documents to SEBI between September 2021 and May 2022 and their documents were returned during January-March (by March 10).
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