Third time lucky? OYO restarts early talks with investment banks for IPO attempt | Company Business News

Hospitality tech firm OYO is once again considering launching an initial public offering (IPO), according to two people familiar with the matter. 

After two unsuccessful attempts, the company will be restarting conversations with investment banks from next week, aiming for a public listing by the final quarter of the current financial year. 

As part of the early-stage preparations, OYO has begun reaching out to both domestic and international merchant banks, said the second person familiar with the matter.

Preliminary talks suggest that the IPO could value the company at between $5 billion and $7 billion. “OYO is currently coordinating with Indian and global banks, and there are tentative plans to submit draft documents to the market regulator between August and September,” said the first person in the know. 

The company is still weighing whether to proceed with financial disclosures for FY25 or wait until audited results for the first quarter of FY26 are finalised.

The Press Trust of India reported the development earlier on Tuesday. 

IPO plans renewed

“There’s a broad consensus among shareholders and board members—including SoftBank—that the timing is right to revisit IPO plans, given the company’s rapid financial recovery and a projected net profit of around ₹620 crore in FY25,” said the first person with direct knowledge of the matter.

OYO first filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in October 2021. It aimed to raise ₹8,430 crore (approximately $1.2 billion) through a combination of fresh issuance and an offer for sale. However, the IPO was delayed due to market volatility. 

In 2023, OYO submitted a revised version of the DRHP, incorporating updated financials and making structural changes to the offering. This refiled draft was seen as a renewed attempt to proceed with its IPO plans. 

Nevertheless, the company withdrew this updated filing in May 2024. The current IPO discussions mark OYO’s third attempt to go public.

Surge in OYO profit

OYO reported a ₹623 crore profit in FY25. Revenue jumped 20% to ₹6,463 crore, and profit after tax surged 172% from the previous year, driven by strong growth in its premium hotel portfolio and global expansion.

The renewed IPO initiative also comes at a time when OYO has resolved a key legal dispute. 

In May 2025, the Delhi High Court ruled in OYO’s favour in its long-running conflict with Zostel Hospitality, the parent company of ZO Rooms. The court set aside an earlier arbitral award, stating that there was no binding acquisition agreement between the two companies. It concluded that OYO did not breach any contractual obligations during the failed deal negotiations dating back to 2015.