Global hospitality and travel tech firm OYO is preparing to file its Draft Red Herring Prospectus (DRHP) in November, aiming for a public listing at a valuation of USD 7-8 billion, according to sources.
People familiar with the matter said the company is expected to present the proposal to its board next week. “The filing with regulators is being considered for November. After extensive discussions with banking partners including Axis, Citi, Goldman Sachs, ICICI, JM Financial and Jefferies, confidence around valuation has strengthened,” a person aware of the developments told PTI.
SoftBank, OYO’s largest shareholder, has been actively engaging with investment banks to gauge market sentiment. The valuation guidance is now pegged at USD 7-8 billion (around Rs 70 per share), translating to 25-30 times EBITDA, sources added.
Responding to queries, an OYO spokesperson said, “We cannot comment on timelines related to OYO’s DRHP or IPO plans, as these decisions rest solely with the Board of Directors. For now, OYO continues to evaluate a range of strategic options to drive value for stakeholders.”
Insiders also indicated that OYO plans to showcase its latest Q1 financial performance in the filing, highlighting strong growth momentum and improved fundamentals amid double-digit growth for the wider hospitality industry.
Meanwhile, OYO is working on a new parent brand identity to unify its expanding portfolio. Earlier this year, CEO Ritesh Agarwal had crowdsourced name suggestions for its parent entity Oravel Stays Limited. The chosen name could soon be unveiled as part of the rebranding exercise.
In addition, the company is exploring a separate app for premium and mid-market hotels, a segment that has witnessed rapid growth both in India and overseas.
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