Mumbai: Hospitality giant OYO, which has redefined budget travel across the globe, is poised to make a grand entry into the stock market with a much-anticipated Initial Public Offering (IPO) by November 2025.
The company is eyeing a whopping valuation of USD 7-8 billion (approximately ₹8,000 crore), with shares likely to be priced at around ₹70 each. As the travel tech firm prepares to file its Draft Red Herring Prospectus (DRHP) with SEBI, excitement is building among investors eager to grab a piece of OYO’s growth story.
A Strategic Push For The Public Markets
Sources indicate that OYO is on the verge of finalising its IPO plans, with a crucial board meeting slated for this week or next to greenlight the proposal. The company has been in high gear, holding discussions with top-tier banks like Axis Bank, Goldman Sachs, Citi, ICICI Bank, JM Financial, and Jefferies to gauge market sentiment. These talks have bolstered OYO’s confidence, with insiders revealing that the market mood is ripe for a successful listing. The projected share price of ₹70 reflects a valuation of 25-30 times its EBITDA, a testament to OYO’s strong brand and robust business model.
An OYO spokesperson, while cautious about confirming timelines, stated, “Decisions regarding the IPO and DRHP filing are solely at the discretion of our Board of Directors. We are exploring multiple strategic options to maximise value for our stakeholders, and any updates will be shared in due course.” The company’s optimism is backed by its stellar Q1 FY26 performance, which showcased double-digit revenue growth and improved margins, capitalising on a booming hospitality sector driven by weddings, corporate travel, and festive demand.
Rebranding And New Ventures
Beyond the IPO, OYO is undergoing a transformation to strengthen its market presence. The company is working on a new brand identity for its parent entity, Oravel Stays Limited. Earlier this year, CEO Ritesh Agarwal took to social media to crowdsource suggestions for a fresh name, hinting at a rebranding that could unify OYO’s diverse portfolio. Additionally, OYO is developing a dedicated app for its premium and mid-market hotel segments, which have seen explosive growth in India and international markets like Southeast Asia and Europe. This strategic move aims to cater to a growing base of discerning travellers seeking high-quality stays.
SoftBank’s Pivotal Role
SoftBank, OYO’s largest shareholder with a nearly 47% stake, has played a key role in steering the IPO preparations. The Japanese investment giant has been actively engaging with global bankers in London and Singapore to test investor appetite. The positive feedback has instilled confidence in OYO’s leadership, paving the way for what could be one of India’s biggest hospitality listings in 2025. The filing is expected to highlight OYO’s financial turnaround, including an estimated ₹620 crore net profit in FY25, a stark contrast to its earlier struggles.
A Third Shot At Glory
This marks OYO’s third attempt to go public, following stalled efforts in 2021 and a withdrawal in May 2024. Previous plans for a ₹8,430 crore offering were shelved due to weak market conditions and the company’s focus on profitability. However, with a revitalised business model and a buoyant hospitality sector — evidenced by an 18% year-on-year surge in Indian domestic travel— OYO is now better positioned to win investor trust. If successful, the IPO could provide SoftBank a partial exit while cementing OYO’s status as a global hospitality powerhouse.
What Lies Ahead?
As OYO prepares to file its DRHP, all eyes are on how the market will respond to its ambitious valuation. With strong fundamentals, a refreshed brand strategy, and a booming travel industry as tailwinds, the company is betting big on its public debut. However, challenges like lingering debt and competition from players like FabHotels and global chains loom large.