OYO IPO update: Firm begins discussions with banks for public issue; shares likely to list in Q4 FY26; check details

Preliminary discussions with investment banks have indicated a potential valuation range of $6-7 billion for the public offering.

The company started informal discussions last month and is now calling for pitches, PTI reported, citing its sources.

"The company is engaging with both Indian and international banking institutions with plans to potentially file the DRHP documents between Aug-Sept this year. It is yet to decide whether to file with FY25 financial results or wait till the Q1 FY26 financials are audited and ready for filing," sources told PTI.

A crucial round of discussions with the company's board and with its key shareholder, SoftBank's representatives, is scheduled for June in London.

"The Board and all shareholders, including SoftBank, are keen for the company to actively evaluate filing an IPO application in the near future due to the swift business turnaround with an estimated ₹620 crore net profit in FY25," the PTI report added.

The renewed IPO push comes after OYO had previously filed and refiled its draft papers with the Securities and Exchange Board of India (SEBI) in 2021, seeking to raise ₹8,430 crore through a public offering.

The company finally withdrew those papers in May 2024.

In the recent past, OYO has streamlined its global operations while strengthening its presence in key markets, including India, the US, Europe and Southeast Asia.

The report indicated that the company's improved financial metrics and operational efficiency have renewed investor confidence, prompting the fresh attempt at going public.

OYO: Latest development

Earlier in May, OYO Founder Ritesh Agarwal, according to a PTI report, told employees that the company has become the most profitable Indian startup with a profit after tax of ₹623 crore in the 2024-25 financial year.

According to documents accessed by PTI, as per its unaudited financials, the company's FY25 PAT (profit after tax) grew 172% from ₹229 crore in the preceding year. It achieved an adjusted EBITDA of ₹1,132 crore in FY25, compared to ₹889 crore in the year-ago fiscal, registering a 27% year-on-year growth and its tenth consecutive quarter of EBITDA profitability.

Consequently, OYO's earnings per share (EPS) reached ₹0.93 for FY25, up from ₹0.36 in FY24, reflecting a 158% increase, the documents showed.

The travel tech platform reported a 54% increase in Gross Booking Value (GBV) to ₹16,436 crore, and its revenue grew to ₹6,463 crore, a 20% increase year-on-year, fuelled by the company's premium offerings through its Company-Serviced Portfolio, including the mid-segment Townhouse Hotels and Softbank and Oravel-promoted Sunday hotels across India, the UK, and the South East Asia and Middle East (SEAME) region, as well as the integration of G6 Hospitality.