OYO begins talks with investment bankers in fresh IPO attempt

The Ritesh Agarwal-led company is likely to be valued in the range of $6-7 billion as suggested in its initial discussions with investment banks.

Hospitality chain OYO has initiated talks with bankers in its latest attempt to launch its initial public offering (IPO). The global travel tech platform is hoping to list in the fourth quarter of the current financial year.

The Ritesh Agarwal-led company is likely to be valued in the range of $6-7 billion as suggested in its initial discussions with investment banks.

The company started informal discussions last month and is now calling for pitches, according to a person familiar with the development.

"The company is engaging with both Indian and international banking institutions with plans to potentially file the DRHP documents between Aug-Sept this year. It is yet to decide whether to file with FY25 financial results or wait till the Q1 FY26 financials are audited and ready for filing," sources told PTI.

A crucial round of discussions with the company's board and with its key shareholder, SoftBank's representatives, is scheduled for June in London.

"The Board and all shareholders, including SoftBank, are keen for the company to actively evaluate filing an IPO application in the near future due to the swift business turnaround with an estimated Rs 620 crore net profit in FY25," said a source close to the development.

The renewed IPO push comes after OYO had previously filed and refiled its draft papers with the Securities and Exchange Board of India (SEBI) in 2021, seeking to raise Rs 8,430 crore through a public offering.

The company finally withdrew those papers in May 2024.

In the recent past, OYO has streamlined its global operations while strengthening its presence in key markets including India, the US, Europe & Southeast Asia.

Sources indicated that the company's improved financial metrics and operational efficiency have renewed investor confidence, prompting the fresh attempt at going public.