Nuvama Wealth Acquires Rs 100 cr in OYO Shares

Nuvama Wealth Acquires Rs 100 Crore Stake in OYO.

Expert Analysis:

• Acquisition Details: Nuvama Wealth and Investment Limited acquired shares worth Rs 100 crore in OYO's parent firm Oravel Stays Limited at Rs 53 per share on behalf of its investors, a clutch of family offices, through a secondary market transaction.

• Valuation: The transaction values OYO at USD 4.6 billion for the travel tech unicorn.

• Early Investors’ Exit: Shares are being sold by OYO’s early investors, providing them a partial exit and potentially bringing in new strategic investors.

• Discussions with Other Buyers: Discussions are underway with other buyers, including Incred, for shares priced between Rs 53-60, with a potential valuation of up to USD 5.2 billion.

• Valuation Comparison: Despite the valuation increase, it is still significantly below OYO’s peak valuation of USD 10 billion.

• Profit Report: OYO reported a net profit of Rs 132 crore in Q1 FY 2025, recovering from a loss of Rs 108 crore in the same quarter last year.