The lodging brand OYO is expected to submit its Draft Red Herring Prospectus (DRHP) in November with a valuation of $7-8 billion, PTI was told by persons with knowledge of the matter. The company is reportedly scheduled to propose the IPO proposal to its board the week after. In a statement, the company stated that its board will decide whether to proceed with the IPO. “As it is a decision that will be guided by OYO’s Board of Directors and will be entirely at their discretion, we are unable to comment on any timelines linked to OYO’s DRHP or IPO related activities. To create value for its stakeholders, OYO is currently assessing a variety of strategic possibilities, according to a company representative. According to sources quoted by PTI, the travel tech platform has stepped up its talks with important finance partners in recent weeks, with the company’s valuation range maintained at $7-8 billion (shares at Rs 70 apiece), potentially in the neighborhood of 25-30 times the EBITDA. “The regulatory file is being reviewed for November. Over the past few months, SoftBank has been collaborating with London-based banks such as Axis, Citi, Goldman Sachs, ICICI, JM Financial, and Jefferies to assess the sentiment of the market. They are now certain of their choice after evaluating market response. According to one source with knowledge of the proceedings, the board will be contacted the next week as the business finalizes important strategic components and irons out the details.
One of OYO’s biggest owners is still SoftBank. According to insiders, the planned filing will highlight OYO’s most recent Q1 financial results, building on a time of robust expansion and strengthened fundamentals. The hospitality sector has also experienced double-digit growth this quarter thanks to robust tailwinds. To bring its growing portfolio together, OYO is preparing to launch a new parent brand identity. Ritesh Agarwal, the founder and CEO of OYO, asked on social media earlier this year for recommendations on the name of the company’s parent company, Oravel Stays Limited. The group’s new name might be the one selected during the activity. Since the luxury hotel and mid-market to premium company-serviced hotel segments have experienced exponential development in both India and international markets, OYO is also actively investigating the possibility of releasing a separate app for these regions.
