NEW DELHI: Global travel technology firm OYO is reportedly planning to file its Draft Red Herring Prospectus (DRHP) in November, targeting an IPO valuation of USD 7-8 billion, according to sources. The company is expected to present the proposal to its board next week, insiders told reporters here.
When contacted, a company spokesperson said, “We cannot comment on timelines related to OYO’s DRHP or IPO plans, as such decisions are guided solely by OYO’s Board of Directors. Currently, OYO continues to evaluate a range of strategic options to create value for its stakeholders.”
Sources indicated that discussions with key banking partners have intensified recently, with the valuation guidance now pegged at USD 7-8 billion (around ₹70 per share), implying a multiple of roughly 25-30 times EBITDA.
“The regulatory filing is being considered for November. Over the past few months, SoftBank has engaged banks including Axis, Citi, Goldman Sachs, ICICI, JM Financial, and Jefferies in London to gauge market sentiment. Based on the feedback, confidence in proceeding has grown. The board will be approached next week as the company finalizes key strategic details,” said one insider.
SoftBank remains one of OYO’s largest shareholders. Insiders suggest the potential filing will highlight OYO’s latest Q1 financial results, leveraging a period of strong growth and improved fundamentals. The hospitality sector has also witnessed double-digit growth this quarter, providing favorable market conditions.
OYO is planning to roll out a new parent brand identity to unify its growing portfolio. Earlier this year, CEO Ritesh Agarwal solicited name suggestions for the parent entity, Oravel Stays Limited, through social media. The selected name may become the group’s new official identity.
Additionally, OYO is exploring a dedicated app for its premium and mid-market serviced hotels, a segment that has experienced rapid growth both in India and internationally.
