OYO Eyes Third IPO Attempt after Record ₹623 Cr Profit
In a significant development, hospitality firm OYO is gearing up to file its initial public offering (IPO) papers with the Securities and Exchange Board of India (SEBI) between August and September 2025. This marks the company’s third attempt at going public, with a target valuation of $6-7 billion. The news comes on the back of OYO’s impressive financial performance, which saw the company report a record profit of ₹623 crore in the fiscal year 2025 (FY25), representing a staggering 172% year-on-year increase.
OYO’s decision to file its IPO papers is a significant milestone for the company, which has been expanding its presence globally and diversifying its offerings to stay ahead of the competition. The company’s successful lawsuit against Zostel, which was recently dismissed by the Delhi High Court, has also paved the way for its IPO plans.
Unprecedented Profit Growth
OYO’s FY25 profit of ₹623 crore is a testament to the company’s remarkable growth and resilience in the face of a challenging global economic landscape. The company’s revenue has been growing steadily over the years, driven by its aggressive expansion strategy and increasing demand for its services. OYO’s profit growth has been particularly impressive, with the company reporting a significant increase in its profitability in FY25.
OYO’s financial performance is a notable achievement, given the challenges faced by the hospitality industry in recent years. The COVID-19 pandemic had a significant impact on the industry, with many hotels and resorts forced to shut down or operate at reduced capacity. However, OYO managed to navigate these challenges and emerge stronger, with its profit growth accelerating in FY25.
IPO Plans
OYO’s decision to file its IPO papers with SEBI marks the company’s third attempt at going public. The company’s first IPO attempt was in 2021, but it was delayed due to market conditions. In 2022, OYO filed its IPO papers, but the company decided to withdraw them due to market volatility.
OYO’s latest IPO attempt is expected to be a significant event in the Indian stock market, with the company targeting a valuation of $6-7 billion. The IPO is expected to be a mix of fresh issue and offer for sale (OFS) by existing shareholders, with the company planning to raise around ₹30,000-₹40,000 crore.
Recent Developments
OYO’s IPO plans have been given a significant boost by the company’s recent victory in its lawsuit against Zostel. The Delhi High Court recently dismissed Zostel’s 7% equity claim, paving the way for OYO to go public.
The lawsuit was a significant distraction for OYO, and the company’s management had expressed concerns about the impact it could have on its IPO plans. However, with the lawsuit now resolved, OYO can focus on its IPO plans and drive growth and expansion in the coming years.
Conclusion
OYO’s decision to file its IPO papers with SEBI is a significant development in the Indian hospitality industry, with the company’s impressive financial performance and recent lawsuit victory paving the way for its IPO plans. The company’s target valuation of $6-7 billion is a testament to its growth potential and its ability to deliver strong financial performance in a challenging industry.
As OYO prepares to go public, it is likely to face increased scrutiny and competition in the market. However, with its strong brand reputation, aggressive expansion strategy, and increasing demand for its services, OYO is well-positioned to succeed in the coming years.
Source:
https://startuptalky.com/news/oyo-set-to-file-ipo-papers-by-september/
