OYO Market Debut
PUNE
OYO, the global travel tech company, is reportedly planning to file its Draft Red Herring Prospectus (DRHP) in November, targeting a $7–8 billion valuation for its initial public offering (IPO), according to sources familiar with the matter. The company is expected to seek board approval for the proposal next week.
While OYO has refrained from commenting on specific timelines, a spokesperson stated that any decision regarding the DRHP or IPO will rest with the Board of Directors, and the company is currently evaluating multiple strategic options to enhance stakeholder value.
Sources indicate that discussions with key banking partners, including Axis, Citi, Goldman Sachs, ICICI, JM Financial, and Jefferies, have intensified over recent weeks. The prospective IPO valuation is estimated at around ₹70 per share, approximately 25–30 times the company’s EBITDA. SoftBank, one of OYO’s largest shareholders, has been actively involved in gauging market sentiment and is confident in moving forward.
The DRHP filing is expected to highlight OYO’s latest Q1 financial performance, reflecting a period of strong growth amid favorable industry conditions. The company is also set to roll out a new parent brand identity to unify its expanding portfolio, potentially adopting a name crowd-sourced earlier this year by founder Ritesh Agarwal.
Additionally, OYO is exploring a separate app for premium and mid-market hotels, capitalizing on the rapid growth of this segment in India and international markets. With these strategic initiatives, OYO aims to strengthen its market position and optimize value ahead of its IPO launch.
