OYO Gears Up for Market Debut, Set to File IPO Papers by September

The hospitality giant OYO has apparently resumed talks for its public offering amidst the persistent rumours surrounding its IPO. The company plans to submit its draft red herring prospectus (DRHP) to SEBI between August and September of this year.

According to a news agency citing sources, the firm has had preliminary talks with several investment banks, who have stated that OYO may fetch between $6 billion and $7 billion when it goes public.

The firm plans to make its market debut by the March quarter (Q4) of fiscal year 2025–2026 (FY26). Notably, after abandoning plans to go public in 2022 and 2024, this would be OYO's third try.

A key meeting between OYO's board and officials of SoftBank, which owns more than 30% of the business, is planned for London next month.

SoftBank Pushing OYO’s IPO Plans

SoftBank reportedly suggested that OYO postpone its IPO aspirations for several months, according to reports that surfaced weeks ago.

According to another media outlet, OYO had previously stated that it aimed to list by October of this year, but after SoftBank's intervention, the business moved the deadline to March 2026.

As per earlier reports, CEO Ritesh Agarwal was under pressure from creditors to speed up the IPO process.

To put things in perspective, Agarwal increased his ownership of OYO in 2019 by taking out a $2.2 billion loan that was personally guaranteed by Masayoshi Son of SoftBank. One instalment of $383 million was due in December 2025 as part of the restructured debt.

OYO Ringing the Profit Bells

In FY25, OYO declared a profit of INR 623 crore. Strong growth in its portfolio of premium hotels and international development drove a 172% increase in profit after tax and a 20% increase in revenue to INR 6,463 crore compared to the previous year.

Additionally, OYO recently settled a significant legal challenge, coinciding with the relaunched IPO attempt. The Delhi High Court decided in favour of OYO in its protracted dispute with ZO Rooms' parent business, Zostel Hospitality, in May 2025.

Because there was no legally binding acquisition agreement between the two corporations, the court overturned an earlier arbitral ruling.

It came to the conclusion that during the unsuccessful deal negotiations that began in 2015, OYO had not violated any contractual duties.

OYO’s Previous IPO Attempt

Oyo filed and refiled its draft papers with the Securities and Exchange Board of India (SEBI) in 2021 in an attempt to collect INR 8,430 crore through an IPO.

This is the reason for the ongoing effort for an IPO. In May 2024, the business eventually retracted such documents.

Oyo has recently strengthened its position in important markets like India, the US, Europe, and Southeast Asia while streamlining its international operations.

According to sources, the company's enhanced operational effectiveness and financial indicators have boosted investor confidence, which is why it is making a second bid to go public.