The federation statement said that, as per reports, Oyo suffered a loss of Rs. 3943.84 crore in FY20-21. This has caused a loss of more than Rs. 76,077 every minute, it said.
Oyo’s IPO delayed due to market volatilityETtech reported.
Oyo has been running short of money since its inception in 2013, and its total revenue fell 69% from Rs 13,413 crore in 2020 to Rs 4,157 crore in 2021.
FHRAI has cautioned that Oyo’s IPO will wipe out public money, enriching its founders and key management.
FHRAI had earlier raised concerns about significant inaccuracies and inadequate disclosures in Oyo’s draft red herring prospectus (DRHP).
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“Apart from engaging in competitive business practices, OYO is a company that has reported consistent losses since its inception. It may have raised a lot of money to be known as one of India’s most promising start-ups. But it is.’ I haven’t done enough to efficiently manage the business on the ground, said Gurbakshish Singh Kohli, vice-president of FHRAI.
FHRAI had earlier filed a complaint with SEBI alleging OYO’s tax evasion. The Directorate General of GST Investigation (DGGI) has registered a case of GST/Service Tax evasion against OYO and its subsidiaries.
FHRAI has also informed that there are several FIRs registered against Oyo under the section. Sections 420, 406 and 409 of the IPC, some of which are serious economic offences, with maximum punishment up to life imprisonment. “In view of the aforesaid, we request SEBI to suspend the IPO process to protect the interest of all stakeholders as well as the general public,” Kohli said.
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