Hospitality Giant OYO Prepares $8 Billion IPO, SoftBank Among Key Backers
New Delhi, August 23, 2025: Indian hospitality giant OYO Rooms is gearing up to file draft papers with the Securities and Exchange Board of India (SEBI) for its much-anticipated Initial Public Offering (IPO). According to sources, the company is expected to file its Draft Red Herring Prospectus (DRHP) in November, with an estimated valuation target of ₹70,000 crore ($7–8 billion).
The development signals OYO’s renewed push to strengthen its market position and unlock shareholder value after years of restructuring, debt management, and pandemic-related challenges.
OYO Eyes Mega Valuation
As per insider reports shared with PTI, OYO’s valuation target is pegged at nearly ₹70,000 crore, translating to around ₹70 per share. This pricing reflects a valuation multiple of 25–30 times the company’s operating profit, suggesting strong investor interest and confidence in the firm’s growth trajectory.
While the exact size of the IPO has not been finalized, banking discussions indicate that OYO could look to raise between $7 and $8 billion, depending on market conditions at the time of launch.
Board Meeting Scheduled, Banking Partners in Talks
The company is expected to discuss the IPO plan in its upcoming board meeting next week. A spokesperson for OYO, however, refrained from confirming the timeline.
“It is too early to comment on the exact timing or any plans related to the IPO. The final decision rests with the board of directors,” the spokesperson said.
Over the last few months, OYO’s promoter SoftBank Group, which remains the largest shareholder, has been in advanced discussions with leading banking partners, including Axis Bank, Citibank, Goldman Sachs, ICICI Bank, JM Financial, and Jefferies. These discussions have revolved around market readiness, investor appetite, and valuation benchmarks.
Filing Likely by November
Sources close to the matter have indicated that the IPO draft could be filed as early as November 2025, provided market conditions remain stable. SoftBank, which has heavily backed OYO since its early years, is believed to be pushing for a strong valuation given its long-term investment in the company.
The IPO draft filing will reveal OYO’s detailed financial performance, growth outlook, debt status, and profitability metrics, offering transparency to potential investors.
New Branding in the Works
Parallel to its IPO plans, OYO is also working on a new parent brand identity to unify its diverse portfolio. Earlier this year, OYO’s founder and CEO Ritesh Agarwal sought public suggestions on social media for renaming the parent entity, Oravel Stays Limited. The new brand identity is expected to be unveiled before the IPO filing, signaling a refreshed image for investors and customers alike.
Premium Hotel Segment Expansion
OYO is also eyeing expansion into the premium hospitality segment. The company reportedly plans to launch a separate mobile application dedicated to premium hotels and mid-to-premium service properties. This comes at a time when demand for higher-end accommodations has grown both in India and overseas, particularly among corporate travelers and affluent tourists.
By targeting this segment, OYO aims to diversify its offerings beyond budget stays and capture a larger share of the high-value hospitality market.
Strategic Focus on Shareholder Value
Company insiders suggest that OYO is currently evaluating multiple strategic options to maximize shareholder returns. This includes strengthening its balance sheet, improving operating margins, and exploring inorganic growth opportunities in international markets.
The IPO, if launched successfully, will not only provide liquidity to existing shareholders like SoftBank but also inject fresh capital for OYO’s expansion plans across India, Southeast Asia, and Europe.
Industry Context
OYO’s IPO journey has faced several delays in the past due to regulatory concerns, market volatility, and operational challenges during the COVID-19 pandemic. However, the company has shown signs of recovery, reporting improved occupancy rates, stronger revenues, and a return to profitability in recent quarters.
Industry analysts believe that OYO’s IPO will be a litmus test for investor sentiment in the Indian startup ecosystem, particularly for consumer-tech firms in the hospitality and travel sectors. With competitors scaling operations and global players eyeing the Indian market, OYO’s ability to sustain profitability and deliver shareholder value will be closely scrutinized.
Looking Ahead
If all goes as planned, OYO’s IPO could debut on Indian bourses in early 2026, making it one of the largest public offerings in the hospitality sector. Investors will be watching closely to see whether the company can live up to its ambitious valuation target and chart a sustainable path of growth in an increasingly competitive market.
