Oyo, which is expected to open its initial public offering (IPO), has got the in-principle approval from the Indian stock exchanges NSE and BSE for listing, reported news agency PTI.

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The company had filed its draft red herring prospectus in September last year with the Securities Exchange Board of India (SEBI) to raise Rs 8,430 crore. The issue would consist of a fresh issue of Rs 7,000 crore and an offer-for-sale (OFS) of Rs 1,430 crore.

The in-principle approval indicates the fact that the company may soon be cleared for its IPO, as the measure is taken at the latter stages of the regulatory approval process. It’s expected that the final stage of the discussions will be finished within 10 days, post which the company will file its updated draft prospectus, reported PTI.

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The updated draft prospectus once approved is published as the final prospectus which is made available for investors by the company.

The company has been looking at a valuation of around $9 billion, with the decline of tech stocks and the pandemic-related financial struggles of the company being cited for the lower valuations, Bloomberg had reported last week.

Despite this discounted valuation, nearly 500 employees and ex-employees of the company exercised their ESOP options to buy 3 crore shares of the company, according to regulatory filings by the hospitality chain. The shares bought would be worth roughly Rs 330 crore on a $9 billion valuation.

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Oyo's largest stake belongs to Softbank Vision Fund, which holds a 46 percent stake. The investor is reportedly going to offload 2 percent of its stake in the upcoming IPO, while founder and CEO Ritesh Agarwal is not diluting his 33 percent stake.

(Edited by : Jomy Jos Pullokaran)