Oyo Eyes $800 Million IPO in Mumbai, Targeting 2026 Launch
Oravel Stays Ltd., Oyo's parent company, is preparing for an IPO in Mumbai aiming to raise up to $800 million by 2026. The company has enlisted Axis Bank, ICICI Securities, and Indian units of Goldman Sachs and Citigroup to manage the offering. The IPO could value Oyo at $7-8 billion. Oyo plans to file a draft prospectus later this year. This follows a previous IPO attempt in 2021. The company's recent financial results show revenue of ₹6,253 crore, a 16% growth, and net income of ₹240 crore.
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Oravel Stays Ltd., the parent company of Oyo Hotels, is gearing up for a significant move in the Indian stock market. The SoftBank-backed hospitality giant is planning an initial public offering (IPO) in Mumbai, aiming to raise up to $800 million. The company has set its sights on 2026 for this major financial event.
Banking on Expertise
Oyo has enlisted the services of several prominent financial institutions to manage its IPO. The roster includes:
- Axis Bank Ltd.
- ICICI Securities Ltd.
- Indian units of Goldman Sachs
- Indian units of Citigroup
These banks will play a crucial role in arranging the public offering, which is expected to include both new and existing shares.
Valuation and Prospectus
The upcoming IPO could potentially value Oyo at $7-8 billion. In preparation for this move, the company plans to file a draft prospectus later this year. There's also a possibility of additional banks joining the arrangement team.
Previous IPO Attempt
This isn't Oyo's first attempt at going public. In September 2021, the company filed IPO documents for ₹8,430 crore. However, the regulator returned the filing in 2023, requesting updated information.
Financial Performance
Oyo's recent financial results paint a picture of growth:
| Metric | Amount |
|---|---|
| Revenue | ₹6,253 crore |
| Revenue Growth | 16% |
| Net Income | ₹240 crore |
These figures represent the company's performance in its latest fiscal year.
Company Background
Founded in 2012 by Ritesh Agarwal, Oyo has grown into a global hospitality powerhouse. The company has served over 100 million customers across 35 countries. Its brand portfolio includes:
- Oyo
- Motel 6
- Townhouse
- Sunday
- Palette
As Oyo prepares for this significant step in its corporate journey, the hospitality industry and investors alike will be watching closely to see how this ambitious IPO unfolds in the coming years.
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