Gurgaon-based hospitality startup OYO is once again preparing to launch its Initial Public Offering (IPO) after two failed attempts in the past. This time, the company is planning to file the Draft Red Herring Prospectus (DRHP) with SEBI between August and September 2025, aiming to list its shares on the stock market by the March 2026 quarter.
This marks OYO’s third attempt to go public. The company first filed for an IPO in 2021, planning to raise ₹8,430 crore. However, due to poor market conditions and a focus on profitability, the plan was withdrawn. In 2023, OYO filed confidential papers with SEBI again, but that effort also did not move forward.
Why OYO Is Trying for an IPO Again
According to industry sources, OYO has undergone significant changes since its initial IPO plans. The company now focuses on profitable and sustainable growth, which has increased investor trust. OYO has streamlined its operations, shut down underperforming markets, and focused more on its core regions, including India, Southeast Asia, the US, and Europe.
Reports suggest that OYO has projected a net profit of ₹620 crore for FY25. These improved financials have encouraged the company to revisit its IPO plans. OYO has also raised ₹1,457 crore in August 2024 from investors, a move that helped the business regain market confidence.
Company in Talks With Indian and Global Investment Banks
OYO’s parent company Oravel Stays Ltd is currently in discussion with both Indian and international merchant banks to manage the IPO. Over the past month, informal talks have already taken place. Now, the company is expected to start formal negotiations soon.
Some investment banks have projected OYO’s valuation as high as $10 billion, but company insiders say that a more realistic figure would be between $6–7 billion. This is based on current performance, market outlook, and the company’s long-term growth strategy.
OYO’s largest investor, SoftBank, holds over 40% stake in the company. The Japanese investment giant and OYO’s board will likely meet next month to make final decisions related to the IPO timeline and valuation targets.
Strategic Moves Before the IPO
To strengthen its position before the IPO, OYO has made several strategic decisions. In December 2024, it secured a loan of $825 million from Deutsche Bank, which was used for its largest acquisition to date—the purchase of Motel 6 in the United States. This deal added significant value to OYO’s global operations.
OYO has also made moves to enter new business segments. It recently acquired Australian short-stay rental platform Medcomi, showing its ambition to expand beyond traditional hotel bookings and into vacation and rental spaces.
Disclaimer: All valuation figures and timelines mentioned are based on media reports and unofficial sources. Final IPO terms and company performance may vary.
Sources: TV9 Hindi, Media Reports
