OYO likely to file IPO papers in November, targets $7-8 billion valuation

OYO’s November DRHP Push at USD 7-8 Billion Valuation.

Expert Analysis:

• Valuation target: OYO is preparing to file its Draft Red Herring Prospectus in November, aiming for a valuation of USD 7-8 billion for its IPO.

• Board timeline: The proposal is expected to be presented to the board next week.

• Banker support: Confidence strengthened after discussions with Axis, Citi, Goldman Sachs, ICICI, JM Financial, and Jefferies.

• Shareholder and valuation: SoftBank engaged with banks to gauge sentiment, with valuation pegged at USD 7-8 billion, Rs 70 per share, 25-30× EBITDA.

• Company stance: OYO spokesperson declined to comment on DRHP or IPO timelines, stating the Board decides while evaluating strategic options for stakeholder value.

• Q1 performance: Filing will showcase the latest Q1 financial performance amid strong growth and improved fundamentals.

• Branding strategy: OYO is rolling out a new parent brand identity and exploring a separate app for premium and mid-market hotels.