Hospitality chain Oyo Rooms, invested by Japan’s SoftBank Group, is preparing to file the Draft Red Herring Prospectus (DRHP) again to launch an IPO. According to news agency PTI, Oyo is soon going to finalize its re-financing plan to raise $450 million through the sale of dollar bonds. JPMorgan could be the lead banker for the re-financing through the sale of dollar bonds at an expected annual interest rate of 9% to 10%, the report said. Application with SEBI to withdraw existing DRHP Oyo has already filed an application with market regulator Securities Exchange Board of India (SEBI) to withdraw its existing DRHP. The company intends to file an updated DRHP with SEBI after the bond issue. What is DRHP? DRHPs are documents that contain essential information about the company planning an IPO. It is filed with SEBI. It provides important information about the company’s finances, its promoters, the risks of investing in the company, reasons for raising funds, how the funds will be used, among other things. Why do companies bring IPO?
