#OYOIPO #StockMarketIndia #StartupEcosystem #HospitalityTech #IPO2025
New Delhi — Indian hospitality and travel-tech major OYO is preparing to file its Draft Red Herring Prospectus (DRHP) with market regulator SEBI in November 2025, marking what will be its third attempt to go public. The company is reportedly targeting an IPO valuation in the range of $7 to $8 billion, making it one of the most high-profile market debuts expected this year.
Board Approval and Backing from Investors
According to sources, OYO will present its IPO proposal to its board of directors next week. The filing follows months of extensive consultations with leading investment banks, including Axis Capital, Citi, Goldman Sachs, ICICI Securities, JM Financial, and Jefferies. These discussions have helped OYO assess market sentiment, refine its valuation expectations, and decide on a strategy to attract both institutional and retail investors.
SoftBank, the company’s largest shareholder, is believed to be a key driver of the IPO discussions. The proposed valuation is based on a share pricing of about $70 per share, reflecting a multiple of 25–30 times EBITDA, which indicates investor confidence in OYO’s growth and profitability trajectory.
A Third Attempt at the Market
OYO first tried to list in 2021, aiming for a valuation of nearly $12 billion. However, that plan was shelved due to the uncertain business environment during the COVID-19 pandemic. In 2023, OYO resubmitted its DRHP through SEBI’s confidential pre-filing route, but fresh queries from the regulator delayed the process yet again.
This time, the company appears to be on a stronger footing. With consistent financial performance over the past two years and a more favorable market environment, OYO is confident that its third attempt will finally lead to a successful listing.
Financial Turnaround
The renewed IPO push comes on the back of a robust financial turnaround. The company has reported 10 consecutive quarters of EBITDA profitability, reflecting improved business fundamentals. In FY25, OYO’s adjusted EBITDA rose to ₹1,132 crore, up from ₹889 crore in the previous year. Its profit after tax (PAT) also surged by 172% year-on-year, reaching ₹229 crore.
This financial improvement has boosted investor sentiment, reassuring stakeholders that the company is not only surviving but thriving in a competitive hospitality market. Analysts believe this performance could help OYO justify its $7–8 billion valuation target.
Rebranding and Strategic Focus
In addition to preparing for the IPO, OYO is working on refreshing its corporate identity. The company has hinted at launching a new parent brand identity to better reflect its evolving global presence and multi-segment strategy. Earlier, CEO Ritesh Agarwal invited suggestions from the public for renaming the parent entity Oravel Stays Limited, indicating a desire to align the group’s brand with its larger vision.
At the same time, OYO is said to be developing a dedicated app for its mid-market to premium segment, catering to business travelers and higher-spending customers. This move highlights the company’s intent to diversify its offerings and strengthen its foothold in segments beyond budget accommodations, where it originally made its mark.
Market Outlook and IPO Significance
If OYO proceeds with filing in November as planned, the IPO could take place by the end of the fiscal year, potentially ranking among the largest listings on Indian exchanges in recent years. Market experts suggest that investor appetite for technology-driven hospitality businesses has grown, especially given the sector’s recovery post-pandemic and the increasing demand for digital-first travel solutions.
Still, challenges remain. OYO will need to convince potential investors that its valuation multiples are sustainable in the long run. The company must also address regulatory scrutiny and maintain its profitability track record to build long-term confidence in its business model.
Industry watchers view the IPO as a significant event not only for OYO but also for the broader startup ecosystem in India. A successful listing could strengthen global investor sentiment toward Indian new-age companies, particularly those seeking to balance rapid growth with profitability.
What Investors Can Expect
For retail investors, OYO’s IPO could represent an opportunity to invest in a brand that has become a household name in budget and mid-range travel across India and several international markets. However, analysts advise caution, noting that while momentum and profitability are on OYO’s side, the hospitality business remains cyclical and highly sensitive to market disruptions.
The company’s management is expected to use the IPO proceeds to strengthen its balance sheet, expand product offerings, invest in technology, and consolidate its market leadership in key geographies.
Conclusion
OYO’s journey from an ambitious budget-hotel aggregator to a global hospitality technology brand has been marked by highs and lows. Having weathered the pandemic and streamlined its business, the company is now betting big on its third IPO attempt. Whether it manages to achieve its ambitious $7–8 billion valuation will depend on investor confidence, regulatory clearances, and the company’s ability to sustain its financial momentum.
If successful, the IPO will not only mark a milestone for OYO but could also reshape the perception of Indian startups in global capital markets.
#OYOIPO #StockMarketIndia #StartupEcosystem #HospitalityTech #IPO2025
