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OYO Gears Up for IPO: Talks with Banks Underway for Public Listing


Updated: May 27, 2025 20:56

Image Source: Linkedln
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

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