OYO Prepares to File for IPO in November, Aims for USD 7 - 8 Billion Valuation

Hospitality and travel technology giant OYO Hotels & Homes is preparing to file its Draft Red Herring Prospectus (DRHP) in November with an aimed valuation of USD 7 – 8 billion (₹58,000 – 66,000 crore). The listing will be one among India’s most highly anticipated IPOs in 2025, as the company seeks to capitalise on the strength of sectoral momentum and its improved financial report.

Board Approval on the Horizon

OYO’s board will consider and approve the IPO offer next week. The firm has been engaged in active talks with leading investment banks – Axis Capital, Citi, Goldman Sachs, ICICI Securities, JM Financial, and Jefferies – with valuation hints at ₹70 per share, or 25-30x its EBITDA.

SoftBank, the biggest shareholder of OYO with an approximate 47% stake, has been leading discussions with London and Singapore-based bankers to test investor demand globally. Positive responses from institutional investors have prompted the company to hasten its path towards filing.

Strong Q1 Results and Market Tailwinds

OYO IPO is likely to showcase OYO’s Q1 FY26 performance, where double-digit growth in revenues, margin increase, and increased occupancy rates in India and other major international markets were witnessed.

The wider hospitality industry is also in strong recovery mode:

• Indian domestic travel jumped 18% YoY in Q1, led by weddings, corporate business, and festival-related demand.
• International leisure markets in Southeast Asia and Europe, where OYO operates, saw record occupancy levels during summer 2025.
• Experts opine that these tailwinds, combined with India’s sustained economic growth, make for a solid underpin for the IPO.

OYO is also busy overhauling the brand identity to bring its portfolio under a new umbrella. In the early part of this year, founder & CEO Ritesh Agarwal solicited suggestions from employees for a new name for parent company Oravel Stays Limited. Insiders indicate the rebranding would be rolled out before the IPO to reinforce its international positioning.

On top of this, the company is building a standalone app for mid-market and premium serviced properties, targeting Indian metros and international visitors. This segment has witnessed 40% YoY growth and is also emerging as a core revenue driver.

Investor Sentiment & Challenges

Even with stronger fundamentals, analysts see some overhangs:

Debt levels: OYO has reduced its debt by over 35% over the past two years but is still under the lens of rating agencies.

Competition: Indian hospitality is getting hotter with FabHotels, Treebo, and global chains expanding their presence.

IPO Market Sentiment: While Ola Electric’s July IPO witnessed robust retail demand, institutional investors are still cautious on profitability timelines in tech-driven firms.

Key Takeaway

If successful, OYO’s IPO would rank among the biggest hospitality listings from India and be a defining moment for the startup ecosystem. With SoftBank looking for partial exits and OYO benefiting from a sectoral boom, November’s filing would position itself for a landmark market debut in early 2026.

Company Statement

While declining to confirm specific timelines, an OYO spokesperson said:

“Any DRHP or IPO-related decision will be guided by the Board of Directors and taken at their discretion. For now, OYO continues to evaluate a range of strategic options to drive value for stakeholders.”

If cleared by the board, OYO’s filing in November would mark one of the most anticipated public listings in India’s hospitality and technology space.

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