New Delhi, July 1 -- Hospitality firm Oravel Stays Ltd, the parent company of Indian travel platform Oyo, plans to raise Rs.6,650 crore in an initial public offering, three-fourths of which will be used to repay or prepay outstanding borrowings, according to updated draft papers filed late Monday with the country's markets regulator.

The IPO will not include an offer-for-sale (OFS) component, meaning existing investors-including SoftBank's SVF India Holdings, founder Ritesh Agarwal, RA Hospitality Holdings, Microsoft, Airbnb, Khazanah, Lightspeed, Greenoaks Capital, and Peak XV-will retain their holdings and not sell any shares as part of the IPO.

No capital in the share sale is earmarked for funding capital expenditure at the company w...