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Tag: OYO IPO

  • OYO Gears Up for Market Debut, Set to File IPO Papers by September

    The hospitality giant OYO has apparently resumed talks for its public offering amidst the persistent rumours surrounding its IPO. The company plans to submit its draft red herring prospectus (DRHP) to SEBI between August and September of this year.

    According to a news agency citing sources, the firm has had preliminary talks with several investment banks, who have stated that OYO may fetch between $6 billion and $7 billion when it goes public.

    The firm plans to make its market debut by the March quarter (Q4) of fiscal year 2025–2026 (FY26). Notably, after abandoning plans to go public in 2022 and 2024, this would be OYO’s third try.

    A key meeting between OYO’s board and officials of SoftBank, which owns more than 30% of the business, is planned for London next month.

    SoftBank Pushing OYO’s IPO Plans

    SoftBank reportedly suggested that OYO postpone its IPO aspirations for several months, according to reports that surfaced weeks ago.

    According to another media outlet, OYO had previously stated that it aimed to list by October of this year, but after SoftBank’s intervention, the business moved the deadline to March 2026.

    As per earlier reports, CEO Ritesh Agarwal was under pressure from creditors to speed up the IPO process.

    To put things in perspective, Agarwal increased his ownership of OYO in 2019 by taking out a $2.2 billion loan that was personally guaranteed by Masayoshi Son of SoftBank. One instalment of $383 million was due in December 2025 as part of the restructured debt.

    OYO Ringing the Profit Bells

    In FY25, OYO declared a profit of INR 623 crore. Strong growth in its portfolio of premium hotels and international development drove a 172% increase in profit after tax and a 20% increase in revenue to INR 6,463 crore compared to the previous year.

    Additionally, OYO recently settled a significant legal challenge, coinciding with the relaunched IPO attempt. The Delhi High Court decided in favour of OYO in its protracted dispute with ZO Rooms’ parent business, Zostel Hospitality, in May 2025.

    Because there was no legally binding acquisition agreement between the two corporations, the court overturned an earlier arbitral ruling.

    It came to the conclusion that during the unsuccessful deal negotiations that began in 2015, OYO had not violated any contractual duties.

    OYO’s Previous IPO Attempt

    Oyo filed and refiled its draft papers with the Securities and Exchange Board of India (SEBI) in 2021 in an attempt to collect INR 8,430 crore through an IPO.

    This is the reason for the ongoing effort for an IPO. In May 2024, the business eventually retracted such documents.

    Oyo has recently strengthened its position in important markets like India, the US, Europe, and Southeast Asia while streamlining its international operations.

    According to sources, the company’s enhanced operational effectiveness and financial indicators have boosted investor confidence, which is why it is making a second bid to go public.

  • By Q1 FY25, Oyo Plans to Register for an IPO

    According to media citations, hospitality startup Oyo has begun preparing its draft red herring prospectus (DRHP), which would be its third attempt to go public, by the first quarter of the upcoming fiscal year. Ritesh Agarwal, the founder, is currently rearranging his shareholdings, which is connected to the upcoming IPO.

    According to media reports last week, Peak XV Partners has already sold shares worth $80-90 million, while early investors, Lightspeed Venture Partners and others, are seeking to sell their shares in the Gurgaon-based company. Agarwal has entered into debt finance agreements that include the IPO plans in order to execute a public offering this year. Media reports emphasised that Oyo’s goal is to file well before the conclusion of the first quarter.

    Agarwal, SoftBank group, and HNI are Expected to Retain Key Space

    In order to invest now and benefit from an IPO, the new investors—mostly family offices—are interested in the IPO link. Before the anticipated IPO filing, three significant shareholder groups—founder Agarwal, SoftBank Group, and HNI family offices—are anticipated to possess a significant portion of the company’s capital table, indicating a concentrated ownership structure.

    According to the most recent data on Tracxn, Agarwal and SoftBank share more than 75% of Oyo parent company Oravel Stays; however, the founder’s stake may increase further as a result of his new investment in the company, which he founded in 2012.

    According to an Oyo representative, the firm has not yet decided on the IPO’s timeline. Oyo is positioned alongside late-stage consumer internet companies like Zepto that are considering public markets this year as a result of the IPO rush. After the public markets embraced new-age companies in 2024, at least 20 startups are anticipated to enter the market this year.

    Oyo Making Significant Efforts to Launch IPO

    In January 2023, the stock market authority rejected Oyo’s initial 2021 effort to go public. After that, the business submitted a new application for a smaller initial public offering (IPO), but it withdrew it in May of last year and chose to raise money privately. At a valuation of $2.4 billion, it concluded a fundraising round of INR 1,457 crore. From a height of $9 billion in 2021 to the present $4 billion, the SoftBank-backed company’s valuation has been erratic, reflecting a resurgence in sustainable operations.

    Oyo’s biggest investor, SoftBank, had cut its valuation from $3.4 billion to $2.7 billion in 2022. Oyo’s updated confidential filing called for a 40–60% lower initial public offering (IPO), whereas its initial proposal was for a $1.2 billion (INR 8,430 crore) offering. Although specifics are still being completed, its most recent IPO is probably going to be less than $1 billion. However, at a valuation of about $4 billion, it is anticipated to fetch a higher price in the ongoing stake sale discussions. In the meantime, Oyo has become profitable, and its cash balance has strengthened thanks to recent fundraising.

    In FY24, Oyo reported its first-ever profit after taxes of INR 229 crore. In the first quarter of FY25, the company reported a profit of INR 132 crore. This performance has been fuelled by strategic investments in Europe as well as expansion in Southeast Asia, India, and the US.

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