Capital markets regulator Sebi has asked Oravel Stays Ltd, the parent company of travel tech company OYO, to resubmit its draft IPO document and make certain updates.

The move could delay the initial public offering (IPO) of the Gurgaon-based hospitality unicorn.

OYO filed preliminary paperwork for an IPO of Rs 8,430 crore with the Securities and Exchange Board of India (Sebi) in September 2021.

The proposed issue includes a new share issue of up to Rs 7,000 crore and a sale offer of up to Rs 1,430 crore.

According to an update on Sebi’s website on Tuesday, the market regulator returned the company’s draft red herring prospectus (DRHP) on December 30, 2022, and asked the company to resubmit the applicable updates/amendments.

However, the regulator did not detail the updates or changes requested in the draft document.

Earlier, the company filed a DRHP addendum that included its financials for the first half of FY23. It reported a profit of Rs 630 crore in the first half of FY23, compared with a loss of Rs 280 crore a year ago.

The company’s revenue in the first half of FY23 (April-September) rose 24% year-on-year to Rs 2,905 crore. Apart from improving operating performance, the company also has cash of Rs 2,785 crore, filings with Sebi showed.

The market watchdog has allowed Oyo to submit updated financial data before reviewing and processing the company’s IPO application.