Oravel Stays Ltd, the operator of the travel-tech company Oyo, is set to refile its initial public offering (IPO) documents with the Securities and Exchange Board of India (SEBI) following the refinancing of its $450 million Term Loan B (TLB) at a lower interest rate.

Oyo is nearing the completion of its refinancing strategy, which involves raising $350-450 million (approximately Rs 2,908.5 crore to Rs 3,739.5 crore) through bond issuance, with an estimated interest rate of 9-10 percent per annum, as per sources reported by IANS on Saturday.

This move aims to substantially reduce the current effective interest rate of 14 percent on the existing $450 million TLB, which has a seven-year repayment term. The anticipated refinancing is expected to deliver annual interest savings of $8-10 million (Rs 66.4-83.0 crore) in the first year, even after accounting for the bond issuance costs. According to sources, these savings could increase to $15-17 million (Rs 124.5 crore to Rs 141.1 crore) annually thereafter, which would significantly boost the company's net profits. The refinancing will lead to significant changes in Oyo's financial statements.

Under current SEBI regulations, the company must update its filings with the regulator. JPMorgan is leading this refinancing initiative. Oyo has decided to delay pursuing IPO approval with its current financials due to the advanced stage of the refinancing decision.