Hospitality Giant OYO Readies November IPO, Valuation Pegged at USD 8 Billion

OYO Hotels & Homes, the hospitality and travel technology company founded by Ritesh Agarwal, is preparing to file its Draft Red Herring Prospectus (DRHP) in November as it moves closer to a long-awaited public listing. The company is targeting a valuation in the range of USD 7–8 billion (₹58,000–66,000 crore), with the offering as one of India’s most closely watched IPOs in 2025.

According to people familiar with the matter, OYO is expected to present the proposal to its board next week before moving ahead with the regulatory filing. The listing plans come at a time when the company aims to leverage renewed momentum in the hospitality sector, alongside an improvement in its financial performance.

Discussions surrounding OYO’s IPO have gained momentum in recent weeks, with valuation guidance placed at USD 7–8 billion (approximately ₹70 per share), translating to a multiple of roughly 25–30 times EBITDA. People aware of the matter said the company is expected to present the proposal to its board next week for approval before moving ahead with the regulatory filing in November.

SoftBank, which holds nearly 47% in OYO, has been leading conversations with top global and domestic investment banks, including Axis Capital, Citi, Goldman Sachs, ICICI Securities, JM Financial, and Jefferies. Sources noted that feedback from London- and Singapore-based investors has been positive, prompting the company to accelerate the filing timeline.

The prospective offer is also expected to highlight OYO’s first-quarter FY26 results, which showed stronger revenue growth, improved margins, and higher occupancy rates across India and international markets. The broader hospitality sector has reported similar momentum, with Indian domestic travel rising 18% YoY in Q1, while OYO’s global markets in Southeast Asia and Europe posted record summer occupancy levels.

Along with gearing up financially, OYO is also refreshing its brand identity. Recently, founder and CEO Ritesh Agarwal invited suggestions on social media for a new name for the parent firm, Oravel Stays Limited. According to insiders, the rebranding is likely to be unveiled before the IPO to bolster OYO’s international positioning.

The company is also developing a dedicated app for its premium and mid-market hotels, a segment that has seen nearly 40% year-on-year growth. This vertical is emerging as one of OYO’s strongest revenue contributors, driven by corporate travel demand and higher-spending leisure customers in India’s metros and select global cities.

Despite improved fundamentals, analysts caution that certain challenges remain. OYO has reduced its debt burden by more than 35% over the last two years, but rating agencies continue to watch its leverage closely. Competition is also intensifying, with FabHotels, Treebo, and global hotel chains expanding aggressively in India’s high-growth hospitality market.