Why is Oyo cutting its issue size and valuations at this late juncture?

OYO is evaluating the possibility of reducing the size of the IPO from $1.20 billion to below $1 billion. At the same time, the valuations of OYO are also likely to be downsized from $9 billion to $7 billion, much lower than the last round of funding by Microsoft.

However, if the size of the fresh issue is reduced by over 20% or if the OFS portion is cut by more than 50% of the original filing size, OYO will have to refile its DRHP. We need to wait and watch.