Oravel Stays Limited IPO

Incorporated in 2012, Oravel Stays Limited, popularly known as OYO, is a multinational hospitality company that operates a technology-driven platform connecting property owners with travelers seeking affordable and quality accommodation. The company partners with hotels, homes, resorts, and other hospitality establishments, enabling them to leverage OYO’s technology, brand recognition, and operational expertise to improve occupancy, revenue, and customer experience. Through its digital platform, travelers can easily discover, compare, and book accommodations while benefiting from standardized services, competitive pricing, and a seamless end-to-end booking experience. The company offers a diverse portfolio of accommodation formats under brands such as OYO Rooms, OYO Townhouse, OYO Homes, Capital O, Palette, Collection O, and Sunday Hotels, catering to leisure travelers, business guests, families, and long-stay customers across multiple countries. As of December 31, 2025, the company had 3,434 full-time employees around the world.

Oravel Stays Limited IPO Overview

SEBI has approved the Initial Public Offer (IPO) of Oravel Stays Ltd. on June 2, 2026. The company will proceed with next steps to launch the IPO subject to market conditions and other approvals. The SEBI approval is valid for 18 months. Oravel Stays Ltd. IPO is a Book Build Issue of ₹6,650.00 crores consisting solely of a fresh issue of shares with no offer for sale component. The equity shares are proposed to be listed on NSE and BSE. Axis Capital Ltd. is the book running lead manager and MUFG Intime India Pvt. Ltd. is the registrar of the issue. Key details like IPO dates, IPO price bands and lot size are yet to be announced. The company’s promoters — Ritesh Agarwal, RA Hospitality Holdings (Cayman) and SVF India Holdings (Cayman) Ltd. — currently hold 70.56% of the pre-issue share capital. Post-issue shareholding will be subject to the final offer price and allotment.

Oravel Stays Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	[.] shares (agg. up to ₹6,650 Cr / ₹66,500 million)
Fresh Issue	[.] shares (agg. up to ₹6,650 Cr / ₹66,500 million)
Offer for Sale (OFS)	Nil
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹1 per share
Listing Exchange	BSE, NSE
Shareholding pre-issue	3,74,59,94,357 shares
Shareholding post-issue	15,05,37,91,264 shares

Oravel Stays Limited IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

Oravel Stays Limited IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not less than 75% of the Net Offer
Retail Shares Offered	Not more than 10% of the Net Issue
NII (HNI) Shares Offered	Not more than 15% of the Net Offer

Oravel Stays Limited IPO Valuation Overview

KPI	Value
Earnings Per Share (EPS)	₹0.52
Price/Earnings (P/E) Ratio	TBD
Return on Net Worth (RoNW)	12.17%
Net Asset Value (NAV)	₹4.26
Return on Equity (RoE)
Return on Capital Employed (RoCE)
EBITDA Margin	9.27%
PAT Margin
Debt to Equity Ratio	2.10

Objectives of the IPO Proceeds

The Net Proceeds are intended to be utilised as per the details provided in the table below:

Particulars	Amount (₹ in million)
Investment in the Subsidiary, Oravel Stays Singapore Pte. Ltd. for repayment/prepayment, in part or full, of certain of its borrowings	49,875.00
General corporate purposes	[●]
Total Net Proceeds	[●]

Note: The company may consider further issue of specified securities aggregating up to ₹13,300.00 million prior to filing of the Red Herring Prospectus with the RoC. The Pre-IPO Placement, if undertaken, will be at a price.

Oravel Stays Limited Financials (₹ in million)

Particulars	31 Dec 2025	31 Mar 2025	31 Mar 2024	31 Mar 2023
Assets	189,442.49	166,953.23	64,434.73	79,324.32
Revenue	69,409.73	62,528.31	53,887.89	54,639.45
Profit After Tax	7,483.38	2,448.22	2,295.79	(12,865.18)
Reserves and Surplus	52,728.56	40,894.30	17,258.26	14,582.55
Total Borrowings	74,848.83	71,440.51	36,029.72	50,714.95
Total Liabilities	138,220.10	129,087.01	55,427.42	73,498.58

Financial Status of Oravel Stays Limited 

Oravel Stays IPO Strengths

Scaled Platform Providing Full-Stack Integrated Technology Solutions

Oravel Stays Limited has developed a comprehensive full-stack technology suite integrating more than 40 products and services, including a central reservation system, property management system, channel management, content management system, mobile applications, websites and reservation suite into its flagship Patron applications, Co-PRISM and PRISM OS. The proprietary platform has largely been developed by in-house engineering teams, providing a competitive advantage over peers using third-party vendor products.

Asset-Light, Scalable Business Model with Low-Cost Centralized Systems

Oravel Stays Limited does not own the storefronts listed on its platform, operating primarily on a revenue-sharing model with investments and capital expenditure borne largely by Patrons. This asset-light approach enables capital-efficient scaling and expansion into new geographies with minimal marginal costs. Unit economics, measured as Gross Profit as a percentage of revenue from operations, improved from 42.58% in Fiscal 2023 to 60.96% in the nine months ended December 31, 2025.

Scaled Global Footprint with Leadership Across Focused Markets

Oravel Stays Limited ranks first in India by number of hotel storefronts and is among the leading players across Southeast Asia, the United States and Europe. As of December 31, 2025, the company had 24,303 hotel storefronts, 124,668 home storefronts and 144,583 listings storefronts across more than 35 countries, providing significant scale benefits and driving higher customer engagement.

Trusted Brands with Strong Customer Distribution Network

Oravel Stays Limited operates a curated multi-brand portfolio of 43 brands designed to serve a wide spectrum of customer needs across premium and economy segments. The company’s strong Customer distribution network is supported by its multi-app platform and extensive loyalty programs, including 16.64 million OYO Wizard members in India, making it the largest loyalty program among leading travel brands in India.

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Business Overview

Oravel Stays Limited is a multinational hospitality company that operates a technology-driven platform connecting property owners with travelers seeking affordable and quality accommodation. The company partners with hotels, homes, resorts, and other hospitality establishments, enabling them to leverage OYO’s technology, brand recognition, and operational expertise.

Business Verticals

The company operates across three primary business verticals:

• Hotels vertical
  Sunday, Townhouse, Townhouse Oak, Palette, OYO, Motel 6, Studio 6 among other brands, spanning India, the United States, the United Kingdom, Southeast Asia and the Middle East.
• Homes vertical
  Professionally managed vacation homes and short-term rental properties operating under brands such as Belvilla and DanCenter, Checkmyguest primarily in Europe and Australia.
• Listings vertical
  Storefronts in Europe that are listed on their platform for a fixed subscription fee.

 

Global Footprint

As of December 31, 2025, the company had 24,303 hotel storefronts, 124,668 home storefronts and 144,583 listings storefronts across more than 35 countries. The company’s storefront network in India extends across more than 500 cities. Over 84% of revenue now comes from outside India, led by the United States (27% of 9MFY26 revenue) and Europe (24%).

Brand Portfolio

The company operates 43 hotel and home brands, making it the second-largest multi-brand portfolio in the global hospitality industry. The curated portfolio includes OYO Rooms, OYO Townhouse, OYO Homes, Capital O, Palette, Collection O, Sunday Hotels, Motel 6, Studio 6, Belvilla, DanCenter, and Checkmyguest, among others.

Technology Platform

The company’s PRISM technology platform, developed largely by in-house engineering, product and design teams, is supported by modular architecture that enables rapid product development, seamless feature expansion and scalable deployment without significant incremental costs. The platform features an intelligent ranking system that analyzes customer historical transactions and browsing behavior to deliver personalized property recommendations.

Management Team

The company is led by Founder and Chairman Ritesh Agarwal, supported by a seasoned management team with strong academic credentials and deep experience across various industries. Key managerial personnel have been employed by the Group for an average of more than eight years. The company has also strengthened its corporate governance by appointing former SEBI Chairman Ajay Tyagi as an independent director.

Industry Outlook

Indian Hospitality Industry

The Indian hospitality market is on a remarkable growth trajectory, reaching USD 27.96 billion in 2026 and projected to hit USD 55.67 billion by 2031, representing a strong compound annual growth rate (CAGR) of approximately 14.76%. The overall hospitality market in India is estimated at USD 281.8 billion in 2025, with a projected CAGR of 14% to 2030. ICRA expects the Indian hospitality industry’s revenues to grow by 6-8% YoY in FY2026, supported by domestic leisure travel, demand from MICE activities including weddings, and business travel.

Growth Drivers

• Rising Domestic Leisure Travel
  The expansion of India’s middle-class population is driving domestic leisure travel, with younger travelers seeking cultural, adventure, and wellness experiences. These experience-led trips often involve higher per-visit spending, benefiting hotel occupancy and revenue.

• Government Initiatives
  Government programs including Swadesh Darshan 2.0 and PRASHAD are developing religious and cultural circuits, while initiatives like Incredible India help boost digital discovery and travel awareness.

• Budget and Mid-Scale Chain Expansion
  Asset-light models have accelerated the rollout of chain hotels in the Indian hospitality market, particularly in mid-scale and budget categories. Operators are converting unbranded inventory into standardized, branded hotels.

• Pilgrimage and Wellness Tourism
  Upgrades to pilgrimage circuits and wellness offerings create sustained demand for multi-night stays. Hotels near spiritual destinations such as Ayodhya and Varanasi are adding wellness packages and boutique experiences.

 

Online Travel Agency (OTA) Market

India’s online travel agency (OTA) market is expected to grow to ₹3,835 billion by FY28, expanding at a CAGR of around 13%, significantly higher than the projected 6.1% CAGR for the global OTA market. The share of online travel bookings in India is expected to increase to 65% by FY28 from the current 54%, reflecting the growing shift toward digital platforms.

Key Market Figures

• Premium hotel occupancy expected to remain between 72-74% in FY2026, with average room rates rising to INR 8,200-8,500.

• India added a record 47,000 hotel rooms in the 2023-24 fiscal year, a 62% increase in hotel signings.

• Chain-affiliated rooms projected to reach 219,000 by FY26 and 241,000 by FY27.

• Kotak Securities projects 16% EBITDA CAGR for the hospitality sector over FY2026-28E.

How Will Oravel Stays Benefit

• Growing hospitality market
  The Indian hospitality market expanding at 14.76% CAGR through 2031 provides significant growth opportunities for Oravel Stays’ core hotel aggregation business.
• Expanding OTA market
  India’s OTA market growing at 13% CAGR to ₹3,835 billion by FY28 positions the company to benefit from increasing digital adoption in travel bookings.
• Budget and mid-scale chain expansion
  The accelerated rollout of chain hotels through asset-light models aligns perfectly with Oravel Stays’ business model of converting unbranded inventory into standardized branded hotels.
• Rising domestic travel demand
  Growing middle-class disposable incomes and increasing preference for experiential travel drive demand for the company’s diverse accommodation offerings.
• Government policy support
  Swadesh Darshan 2.0, PRASHAD, and other government initiatives enhance tourism infrastructure, benefiting the company’s pan-India storefront network.
• International diversification
  With over 84% of revenue from international markets, the company benefits from diversified geographic exposure and growth across multiple economies.
• Premium segment expansion
  The company’s expansion into premium categories through CheckIn collection captures higher-value transactions and improves unit economics.

Oravel Stays Limited Peer Comparison

Name of Company	Face Value (₹)	Revenue (₹ million)	Basic EPS (₹)	Diluted EPS (₹)	P/E (x)	RoNW (%)	NAV (₹)
Our Company	1	62,528.31	0.18	0.17	[●]	(3)5.18%	3.20
Peer Group
TBO Tek Limited	1	17,374.73	21.73	21.48	79.16	19.24%	111.66
Lemon Tree Hotels Limited	10	12,860.78	2.48	2.48	65.32	19.56%	12.69
The Indian Hotels Company Limited	1	83,345.40	27.79	27.75	26.65	17.16%	78.09
ITC Hotels Limited	1	35,598.10	3.05	3.05	65.08	5.94%	51.33

Key Strategies for Oravel Stays Limited

Grow Patron Base and Storefront Footprint Globally

Oravel Stays Limited plans to increase the number of hotel storefronts in India, Southeast Asia, Middle East, the United Kingdom and the United States, as well as the number of home storefronts in Europe. The company’s curated multi-brand portfolio provides a clear pathway for Patrons to upgrade properties to premium storefronts, enhancing their value proposition while remaining within the ecosystem.

Expand Customer Offerings Across Price Points and Formats

Oravel Stays Limited plans to leverage data-driven insights on customer preferences to diversify storefront offerings, particularly in the premium category, while maintaining a strong value-for-money proposition in the economy category. The expansion into premium hotels and increased proportion of company-serviced storefronts has directly contributed to higher-value transactions across the platform.

Improve Value Proposition to Customers and Drive Growth in Direct Demand

Oravel Stays Limited continues to strengthen its direct demand ecosystem by investing in enhancing customer experience through product features, personalization and user interface enhancements. The CheckIn mobile application, launched in September 2025, primarily features premium hotel brands and is positioned as a key direct distribution channel.

Invest in Technology Developments to Strengthen Engagement

Oravel Stays Limited’s PRISM technology platform, supported by modular architecture, enables rapid product development and scalable deployment. The company aims to integrate its proprietary full-stack technology platform across acquired storefront networks, optimizing occupancy rates and refining pricing strategies based on real-time demand dynamics.

Strengthen Balance Sheet and Improve Financial Flexibility

Oravel Stays Limited intends to utilize approximately 75% of the IPO proceeds (₹4,987.5 crore / ₹49,875 million) for repayment of borrowings of its subsidiary, Oravel Stays Singapore Pte. Ltd. This strategic debt reduction is expected to lower finance costs, improve the debt-equity profile, and provide greater financial flexibility for future growth initiatives.