Global hospitality technology firm OYO has rekindled its initial public offering (IPO) ambitions, initiating early-stage discussions with investment banks for a potential listing in the final quarter of the current fiscal year. Sources close to the development suggest the company is targeting a valuation between USD 6 billion and USD 7 billion (approximately Rs 49,800 crore to Rs 58,100 crore). The move comes on the heels of a significant business turnaround, with OYO projecting a net profit of Rs 620 crore in FY25. A key round of deliberations involving the board and primary investor SoftBank is slated for June in London.
Renewed IPO Momentum After a Strategic Pause
After multiple delays and the eventual withdrawal of its previous draft red herring prospectus (DRHP) in May 2024, OYO is once again exploring a public listing. The company has begun informal conversations with both domestic and global investment banks, inviting pitches to underwrite and manage the upcoming IPO. These efforts represent a renewed push to capitalize on improved financials and operational streamlining.
The hospitality platform, which offers tech-enabled short-term stays and hotel aggregation, is now strategically positioning itself to file fresh IPO documents as early as August or September. However, the timing will depend on whether OYO opts to report full-year FY25 financials or await the audited figures for the first quarter of FY26.
Projected Valuation and Financial Turnaround
Preliminary estimates suggest that OYO could seek a valuation in the range of USD 6–7 billion, or approximately Rs 49,800 crore to Rs 58,100 crore. This valuation range, though lower than the Rs 8,430-crore target in its 2021 filing, reflects a more grounded and sustainable growth narrative centered around profitability.
Crucially, the company is on track to report a net profit of Rs 620 crore in FY25—a notable shift from its earlier losses. This profitability milestone appears to have significantly boosted investor confidence, particularly among institutional stakeholders who value bottom-line stability.
Key Shareholder Support and Board-Level Discussions
A pivotal board meeting involving key shareholders, including representatives from Japan’s SoftBank Group—OYO’s largest investor—is scheduled for June in London. The discussions are expected to focus on finalizing the IPO roadmap and aligning strategic goals.
SoftBank, which has invested billions in OYO since its early stages, is reportedly supportive of the renewed IPO plan, viewing the company's recent business recovery and profitability as favorable indicators for public market entry.
Strategic Market Realignment and Operational Efficiency
OYO’s latest IPO strategy coincides with an ongoing realignment of its global footprint. The company has pared down non-core operations and redirected its focus toward high-performing geographies such as India, Southeast Asia, Europe, and the United States.
This operational refocus, coupled with digital transformation initiatives, has led to increased efficiency across its platform—factors that are likely to resonate with investors during roadshows and prospectus disclosures.
Conclusion: A More Measured Second Attempt
OYO’s IPO revival marks a cautious yet optimistic pivot from its earlier, more aggressive fundraising strategies. With improved earnings, streamlined operations, and renewed backing from major shareholders, the company is positioned to approach public markets from a position of relative strength. Whether OYO ultimately meets its valuation targets will depend on broader market conditions and the strength of its forthcoming financial disclosures. Nonetheless, the hospitality tech firm appears better prepared—and more disciplined—for its second act on the bourses.
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