OYO's Unlisted Shares Soar 26% Amid IPO Speculation and Strong Quarterly Results
OYO's unlisted shares have risen by 26% in the past month, outperforming listed hospitality peers. The company's parent, Oravel Stays, now trades at Rs 53.00 per share. OYO may file IPO papers in November, targeting a $7-8 billion valuation. Recent quarterly results show doubled profits to Rs 200 crore, 47% revenue growth to Rs 2,019 crore, and 144% increase in gross booking value to Rs 7,227 crore. A 1:1 bonus share issue is planned for September 30, 2025. Analysts are divided on the stock's valuation, with a current P/E multiple of 150-160.
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OYO, the hospitality technology platform, has seen a significant surge in its unlisted shares, outpacing its listed peers in the hospitality sector. This uptick comes amidst speculation of an impending Initial Public Offering (IPO) and robust financial performance.
Share Price Rally
Oravel Stays, the parent company of OYO, witnessed a remarkable 26% increase in its unlisted share price over the past month. The shares now trade at Rs 53.00 apiece, showcasing investor confidence in the company's prospects. This rally has outperformed several listed hospitality peers:
- Lemon Tree Hotels: 21% increase
- Chalet Hotels: 17% increase
- IHCL (Indian Hotels Company Limited): 4% increase
Potential IPO on the Horizon
Market speculation suggests that OYO may file its draft IPO papers as soon as November. The company is reportedly targeting a valuation between $7-8 billion, signaling its ambitions in the public market.
Strong Financial Performance
OYO's recent quarterly results have further fueled investor interest:
| Metric | Value | Change |
|---|---|---|
| Profit After Tax | Rs 200.00 crore | More than doubled from Rs 87.00 crore YoY |
| Revenue | Rs 2,019.00 crore | Grew by 47% |
| Gross Booking Value | Rs 7,227.00 crore | Surged by 144% |
Bonus Share Announcement
In a move that could potentially increase shareholder value, OYO has announced a 1:1 bonus share consideration. The record date for this bonus issue is set for September 30, 2025.
Analyst Perspectives
The market sentiment around OYO remains mixed:
- Current Valuation: The stock is trading at a price-to-earnings (P/E) multiple of 150-160
- Divided Opinions: Some analysts view the stock as richly valued, while others consider it fairly priced
- Growth Factors: Supporters point to OYO's asset-light business model and strong growth trajectory as justifications for the current valuation
As OYO continues to make waves in the private market, all eyes will be on its potential public market debut and how it navigates the challenges and opportunities ahead in the competitive hospitality sector.
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