OYO to File IPO Papers in November, Aims for $7-8 Billion Valuation: Report

OYO, the hospitality and travel technology company, is set to move forward with its long-awaited initial public offering plans. According to PTI reports, the firm is preparing to file its Draft Red Herring Prospectus (DRHP) in November, with an anticipated valuation of between $7–8 billion. The company is expected to present the proposal to its board next week.

Banking Engagements And Valuation Outlook

As per news reports, SoftBank, one of OYO’s largest shareholders, has been actively engaging with investment banks, including Axis, Citi, Goldman Sachs, ICICI, JM Financial, and Jefferies in London to assess investor sentiment. 

Over the past few weeks, discussions have intensified, with valuation expectations now estimated at 25–30 times EBITDA. The filing with regulators, once approved by the board, will highlight OYO’s Q1 financial performance, which the company believes reflects stronger fundamentals and sustained growth momentum.

Strategic Developments And Branding Plans

While OYO has not officially confirmed IPO timelines, news reports emphasised that the board would guide the decision-making process, stating that the firm continues to explore strategic options aimed at creating value for stakeholders. 

Alongside its IPO plans, the company is working on a refreshed parent brand identity to consolidate its diverse portfolio. Earlier this year, CEO and founder Ritesh Agarwal had sought suggestions on social media for a new name for Oravel Stays Limited, with the selected option likely to become the new group identity.

Expanding Hospitality Offerings

As per news reports, the hospitality industry has seen double-digit growth this quarter, providing strong tailwinds for OYO’s expansion. To tap into rising demand, the company is also considering a dedicated app for premium and mid-market serviced hotels. 

This segment has witnessed rapid growth both in India and across OYO’s international markets, reinforcing its focus on scaling higher-value offerings.

Read More: Kissht Operator OnEMI Technology Files IPO Papers for ₹1,000 Crore Fresh Issue, 89 Lakh Share OFS!

Conclusion

By gearing up for a November DRHP filing, OYO is aiming to capture investor interest with its improved financial performance, fresh branding strategy, and new product rollouts. The IPO, expected to value the company at $7–8 billion, could mark a significant milestone in its journey from a budget stay aggregator to a global hospitality player.

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