Summary:
- OYO reportedly plans to file its DRHP in November for a $7-8 billion IPO.
- The company recently delayed its third IPO attempt due to market volatility.
- It added more than 150 hotels to its U.S. portfolio in the first half of 2025.
OYO IS REPORTEDLY planning to file its Draft Red Herring Prospectus in November for an IPO targeting a $7 to 8 billion valuation. The company will present the proposal to its board next week.
Discussions with banking partners have increased in recent weeks, with valuation guidance at $7 to 8 billion (about ₹70 per share), or 25 to 30 times EBITDA, Press Trust of India reported citing sources.
"While we cannot comment on any timelines related to OYO's DRHP or IPO plans, as these will be guided by OYO's board of directors and remain at their discretion, OYO continues to evaluate a range of strategic options to drive value for its stakeholders," a company spokesperson told PTI.
In May, OYO delayed its third IPO attempt due to opposition from its largest shareholder, SoftBank, and market volatility.
“Over the past few months, SoftBank has engaged with banks such as Axis, Citi, Goldman Sachs, ICICI, JM Financial and Jefferies in London to assess market sentiment. After assessing market feedback, they are now confident in their decision,” one person aware of the developments was quoted as saying. “The board will be approached next week as the company firms up the details and finalises key strategic elements."
SoftBank remains one of OYO's largest shareholders. Insiders indicate the filing will showcase OYO's first-quarter financial performance, the report said. The hospitality industry also saw double-digit growth this quarter.
OYO is planning a new parent brand identity to unify its portfolio. Earlier this year, OYO CEO Ritesh Agarwal asked for name suggestions for Oravel Stays Ltd on social media. The chosen name may become the group's new name. OYO is also exploring a separate app for its premium and mid-to-premium company-serviced hotels, as the segment has grown across India and global markets.
Agarwal also chairs G6 Hospitality, parent of Motel 6 and Studio 6. Agarwal and G6 CEO Sonal Sinha previously spoke with Asian Hospitality on leadership and performance.
OYO added more than 150 hotels to its U.S. portfolio in the first half of 2025 and plans 150 more by year-end.
