India’s primary market is gearing up for one of the most awaited listings of the year as OYO Hotels & Homes, founded by Ritesh Agarwal, plans to file its Draft Red Herring Prospectus (DRHP) in November 2025. The startup is eyeing a valuation of $7–8 billion, with reports also highlighting shares priced at ₹70 apiece and valuations in the range of 25–30x EBITDA.
IPO Process and Valuation
OYO aims to raise ₹800 crore through the public offering. The company’s board of directors will review the IPO proposal next week, after which the filing with SEBI is expected. Leading investment banks including Axis Capital, Citi, Goldman Sachs, ICICI Securities, JM Financial, and Jefferies in London are advising the issue.
Backer SoftBank, which holds nearly 47% stake in OYO, has been actively involved in discussions with bankers across London and Singapore. Initial interactions with institutional investors have received encouraging responses, strengthening confidence about the listing.
Financial Performance
OYO’s recent numbers show a sharp turnaround. As per unaudited results, the company’s profit after tax in FY25 surged 172% to ₹623 crore, compared to ₹229 crore in FY24. Its adjusted EBITDA rose 27% to ₹1,132 crore, up from ₹889 crore in the previous year. With ten straight quarters of EBITDA profitability, OYO’s financial stability is a central theme for the IPO.
The upcoming DRHP is also expected to feature OYO’s Q1 FY26 results, highlighting double-digit revenue growth, improved margins, and better occupancies across both domestic and international operations.
Sector Tailwinds and Strategy
The hospitality sector continues to see strong momentum. Domestic travel bookings in India rose 18% year-on-year in Q1, while OYO’s overseas businesses in Southeast Asia and Europe experienced record summer occupancies in 2025.
For its next growth phase, OYO is undertaking a rebranding initiative for parent entity Oravel Stays Ltd. and plans to unveil a new group identity before listing. Additionally, it is developing a standalone app for premium and mid-market hotels, a category delivering 40% year-on-year growth and steadily becoming a major revenue segment.
Challenges Ahead
Analysts, however, remain cautious about OYO’s debt exposure, intensifying competition from FabHotels, Treebo, and international chains, and investor concerns around tech-driven business models sustaining profitability over the long term.
Conclusion
If executed successfully, OYO’s IPO could be one of the largest hospitality listings from India, blending profitability improvements, industry recovery, and new growth initiatives. With board approval imminent and a November DRHP filing lined up, OYO is set for a crucial step toward Dalal Street.