OYO To File IPO Papers In November, Targets $7-8 Bn Valuation

SUMMARY

As per PTI, the Ritesh Agarwal-led startup is targeting $7-8 Bn valuation for its initial public offering (IPO)

Besides, sources also told the publication that it is likely to take the proposal for its IPO to its board by next week

OYO’s original public listing plan was postponed due to market conditions, it then refilled for an IPO confidentially in 2023, but that attempt also didn't fructify

Amid the ongoing startup IPO boom, hospitality major OYO is now reportedly planning to file its draft red herring prospectus (DRHP) in November.

As per PTI, the Ritesh Agarwal-led startup is targeting $7-8 Bn valuation for its initial public offering (IPO).

Besides, sources also told the publication that it is likely to take the proposal for its IPO to its board by next week.

The startup didn’t officially confirm the development. “While we cannot comment on any timelines related to OYO’s DRHP or IPO related plans, since it’s a decision that will be guided by OYO’s board of directors and will be solely at their discretion. For now, OYO continues to evaluate a range of strategic options to drive value for its stakeholders,” an OYO spokesperson told Inc42.

Important to mention that the startup’s journey to the bourses has been a long, bumpy one. It first filed its DRHP for an IPO in September 2021, aiming to raise about $1.2 Bn at a valuation of $11-12 Bn.

OYO’s original public listing plan was postponed due to market conditions. It then refilled for an IPO confidentially in 2023, but that attempt also didn’t fructify.

However, the startup has been able to strengthen its financial health in the run-up to its IPO. For the fiscal year FY25, OYO’s net profit jumped 172% to INR 623 Cr in FY25 from INR 229 Cr in the previous fiscal year. Its top line grew 20% to INR 6,463 Cr from INR 5,388.7 Cr in FY24. For the ongoing fiscal year FY26, OYO’s founder Ritesh Agarwal expects the startup’s net profit to touch INR 1,100 Cr.