India Digest: OYO to refile IPO draft papers, Sun Pharma to buy ConcertOYO is refiling its IPO draft papers by mid-February.

Oyo operator Oravel Stays Ltd is refiling the draft papers for its IPO by February, while Sun Pharmaceutical Industries is acquiring Concert Pharmaceuticals for $576 million in equity value.

Oyo refiling IPO draft papers by February

Oravel Stays Ltd, the parent company of Indian hospitality unicorn OYO, is refiling the draft papers for its initial public offering (IPO) by mid-February, according to reports.

The move comes after the Securities and Exchange Board of India (Sebi) asked Oravel Stays to refile its draft IPO documents with updates and revisions. The draft red herring prospectus (DRHP) was returned by Sebi on December 30.

Following this, the regulator asked the company to update all relevant sections, such as risk factors, KPIs, outstanding litigations, and basis for the offer, and refile the DRHP.

Earlier, OYO had filed an addendum to its DRHP, which included its financials for the first half of FY23 (i.e. April-September 2022). The Gurugram-headquartered company had reported a profit of Rs63 crore during the said period compared with a loss of Rs280 crore a year ago.

OYO’s revenues in the first half of FY23 jumped 24% year-on-year to Rs2,905 crore. The company has a cash corpus of Rs2,785 crore.

Sun Pharma to buy Concert for $576m equity value

India-listed Sun Pharmaceutical Industries announced that it has agreed to acquire all outstanding shares of Nasdaq-listed Concert Pharmaceuticals for an upfront payment of $8 per share of common stock in cash, or $56 million in equity value.

According to the two pharma companies’ announcement, the upfront payment of $8 per share of common stock in cash represents a premium of approximately 33% to Concert’s 30-day volume weighted average price as of January 18, 2023, the last trading day prior to the announcement.

Based in Mumbai, Sun Pharma is the world’s fourth-largest specialty generic pharmaceutical company and India’s top pharmaceutical company. It manufactures pharma formulations and active ingredients in more than 100 countries across the globe.

Concert, on the other hand, is a late-stage biotechnology company pioneering the use of deuterium in medicinal chemistry. For the nine-month period ending September 2022, Concert reported total revenue of $29 thousand and a net loss of $90.6 million.

The transaction is expected to be completed in Q1 of 2023, subject to the tender of a majority of the outstanding shares of Concert’s common stock, as well as the receipt of applicable regulatory approvals and other customary closing conditions.

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