Oyo: The body of hotels and restaurants urges Sebi to reject Oyo’s IPO citing irregularities

The Federation of Hotel and Restaurant Associations of India (FHRAI) asked the Securities and Exchange Board of India (SEBI) to reject Oyoinitial public offering of (IPO), noting the significant losses of the company in previous years.

The federation’s statement said that according to reports, Oyo suffered losses of Rs. 3943.84 crore in FY20-21. This results in a loss of over Rs 76,077. every minute, he said.

Oyo’s IPO was delayed due to market volatilityETtech reported.

Oyo has been losing money since its inception in 2013 and its total revenue has decreased by 69% from Rs 13,413 crore in 2020 to Rs 4,157 crore in 2021.

FHRAI has warned that Oyo’s IPO will eliminate public wealth by enriching its founders and key management.

FHRAI had previously raised concerns about significant inaccuracies and inadequate disclosures in Oyo’s Draft Red Herring Prospectus (DRHP).

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“In addition to engaging in anti-competitive business practices, Oyo is a company that has consistently made losses since its inception. It may have raised a lot of money to be advertised as one of India’s most promising startups, but it has’ I didn’t. enough to run the field business as efficiently as possible, “he said Gurbxish Singh KohliVice President, FHRAI.

FHRAI had previously filed a complaint with Sebi about Oyo’s alleged tax evasion. The General Management of GST investigation (DGGI) filed a service / GST tax evasion lawsuit against Oyo and its subsidiaries.

FHRAI also reported that there are numerous FIRs against Oyo registered pursuant to art. 420, 406 and 409 of the CPI, some of which are serious economic crimes that carry a maximum penalty of up to life imprisonment. “In view of the above, we ask SEBI to suspend the IPO process to protect the interests of all stakeholders and the general public,” said Kohli.

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