Hospitality sector giant OYO may launch its IPO by November. According to reports, the company is preparing to go public at a valuation of approximately ₹8000 crore, and the price per share could be around ₹70.
OYO IPO: Hospitality company OYO (Oravel Stays Limited) is planning to launch its IPO by November 2025. According to a report by Mint, the company may soon file the DRHP with SEBI and will enter the market at a valuation of approximately ₹8000 crore. The share price may be fixed at around ₹70, which is 25-30 times the company's profits. A final decision on this will be taken in OYO's board meeting. Meanwhile, the company is also preparing to change its brand identity and launch a separate app for premium hotels. SoftBank remains the largest investor and is playing a key role in the IPO preparations.
OYO Share May Be Available at ₹70
According to sources, OYO's share may be made available at around ₹70. This price is 25 to 30 times the company's profit. The company is confident that its brand value and business model will attract investors even at this price. OYO has recently held discussions with several large financial institutions such as Axis Bank, ICICI Bank, Goldman Sachs, and Citibank. After these discussions, the company feels that the market environment is right for it and investors will be enthusiastic.
Draft May Be Filed in November
According to a report in Mint, the company may discuss this proposal in the board meeting this week or next week. After this, the Draft Red Herring Prospectus (DRHP) may be filed with SEBI by November. Currently, no official date has been announced by the company. An OYO spokesperson says that several options are being considered and the final decision will be taken by the board.
Preparation for New Name and App
OYO is not only planning to enter the stock market but is also considering giving a new look to its brand identity. The company plans to change the name of its parent company, Oravel Stays Limited. Earlier this year, CEO Ritesh Agarwal also appealed to people on social media to suggest a new name. Along with this, the company is preparing to launch a new app. This app is being created specifically for premium hotels and well-serviced hotels in the mid-market segment. The company expects to see rapid growth in this segment in India and internationally.
OYO has made several changes to its business model in the last few years. The company is now focusing more on premium and mid-segment hotels. Under this strategy, it wants to showcase its b hold to investors. The company believes that its business can grow even faster due to increasing customer demand and the growing trend of digital travel booking.
SoftBank's Large Stake
SoftBank still has the largest stake in OYO. SoftBank has played a key role in planning OYO's IPO and gauging the market's pulse. SoftBank's support in discussions with banks and investors has been a great support for the company. This is the reason why OYO is now confident that this IPO will be launched at the right time and will win the trust of investors.
Preparation for a Strong Entry into the Market
OYO's focus this time is not only on raising capital but it is also planning to take its brand value to a new level. For the company, this IPO will not only be an opportunity to return to the market but also an opportunity to strengthen investors' trust again. This step, scheduled for November, is being considered one of the biggest news stories in the hospitality sector.
