OYO Gears Up for IPO: Talks with Banks Underway for Public Listing
Updated: May 27, 2025 20:56
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Largest hospitality and travel technology firm OYO has begun talks with investment banks for a new attempt at an Initial Public Offering (IPO). OYO is aiming to list in Q4 FY25, with a possible valuation of $6-7 billion. This comes after OYO's earlier attempts at listing failed because of market sentiments.
1. IPO Talks at Advanced Stage
OYO has begun speaking with Indian and global banking institutions to seal its IPO plan.
The firm is likely to submit its Draft Red Herring Prospectus (DRHP) in August and September 2025.
A key board meeting with SoftBank officials is planned for June in London to seal IPO details.
2. Anticipated Valuation and Market Share
Investment bankers value OYO between $6-7 billion.
The firm has posted a rapid business turnaround with an estimated net profit of ₹620 crore in FY25.
Global expansion of OYO to India, the US, Europe, and Southeast Asia has bolstered investor confidence.
3. Prior IPO Attempts and New Strategy
OYO first filed for an IPO in 2021 with an intention to raise ₹8,430 crore but subsequently withdrew its application in May 2024.
The firm has since optimized operations and financial metrics, leading to renewed investor attention.
OYO is deliberating whether to list with FY25 financials or wait for Q1 FY26 financials to be audited.
4. Future Outlook and Investor Sentiment
OYO's operational efficiency and profitability have come a long way, with the firm being a clear winner in terms of a successful IPO.
The firm's move into new verticals, such as food and beverage services, is going to drive revenue.
Investors expect OYO to continue on its growth path, with its solid financial turnaround and strategic market positioning.
Sources: Money Control, The financial Express, The Times of India, NDTV Profit