IPO-bound OYO to become public limited company

Shareholders of Oravel Stays Pvt Ltd, the parent company of hospitality firm OYO, have approved the conversion of the company from a private limited company to a public limited company, according to a 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 Ltd, as per a Registrar of Companies (RoC) filing by the company.

The company intends to list its equity shares on one or more stock exchanges to enable shareholders with 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.

This seems to be the last significant permission from the Ministry of Corporate Affairs, to enable OYO to apply to markets regulator Sebi an application for public listing.

Last week, the board of Oravel Stays Private Limited had approved an increase in the authorised share capital of the company from Rs 1.17 crore to Rs 901 crore.

OYO is likely to file its draft red herring prospectus (DRHP) with Sebi in the next couple of months, according to sources.

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, the sources said.

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