OYO may submit IPO filings in November, with a target of $700-800 million
Sources said global hotel and travel technology company OYO is preparing to submit its draft Red Herring prospectus (DRHP) in November, aiming to go public at a valuation of $700-800 million.
People familiar with the matter said the company is expected to propose a proposal to its board of directors next week. “The newspaper submitted with regulators will be considered in November. Confidence in valuation has been strengthened after extensive discussions with banking partners including Axis, Citi, Goldman Sachs, ICICI, JM Financial and Jefferies,” a person aware of these developments told PTI.
SoftBank, Oyo’s largest shareholder, has been actively interacting with investment banks to measure market sentiment. The source added that the valuation guide is now fixed at US$700 million (Rs 70 per share), converting to 25-30 times the EBITDA.
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“We cannot comment on the timelines related to Oyo’s DRHP or IPO plan, as these decisions rely solely on the board. Currently, OYO continues to evaluate a range of strategic options to drive the value of stakeholders to drive value.”
Insiders also noted that OYO plans to showcase its latest first-quarter financial performance in filing, highlighting strong growth momentum and improving fundamentals in double-digit growth in the wider hospitality industry growth.
Meanwhile, OYO is researching the new parent brand identity to unify its expanding portfolio. Earlier this year, CEO Ritesh Agarwal held crowdsourcing advice to his parent entity Oravel. As part of the reshaping exercise, the selected name will be unveiled soon.
Additionally, the company is exploring a separate app for premium and mid-market hotels, which has grown rapidly in India and overseas.
