OYO Re-Revises IPO Plans, Aims for Q4 Listing at $6–7 Billion Valuation

Indian hospitality behemoth OYO Hotels is reviving its plans for an Initial Public Offering (IPO), looking to list in the fourth quarter of 2025 at a valuation of between $6 billion and $7 billion. This is the company's third go at going public, after earlier postponements due to market sentiments and internal factors.

IPO Plans Amid Market Dynamics

OYO's fresh IPO plans come amid a rising sign of volatility in India's stock market. The Nifty 50 index, a major benchmark, has gained around 3% till now in 2025 but is still more than 7% from its record high in October last year. Inspite of such market volatility, OYO is going ahead with its plans, reflecting its faith in its business model and growth trajectory.

Business Expansion and Financial Performance

OYO, which was started in 2012 by Ritesh Agarwal, has grown its presence to more than 30 countries such as the USA, UK, and a few countries in Europe. The company posted its first-ever annual profit of 229 crore in FY24, which reflects its turnaround and operational effectiveness.

Strategic Considerations and Stakeholder Interests

OYO's biggest shareholder, SoftBank, had previously raised concerns regarding the timing of the IPO, asking the company to wait for its earnings to pick up. Founder Ritesh Agarwal had wanted an accelerated IPO to fulfill terms of a restructured \$2.2 billion loan he took in 2019 to increase his holding in the company. The loan was guaranteed personally by SoftBank founder Masayoshi Son, making it another source of complexity in the IPO talks.

Implications for the Stock Market and Investors

OYO's planned IPO is likely to have profound implications for the Indian stock market. The listing may draw considerable investor attention, especially in Exchange-Traded Funds (ETFs) tracking hospitality and technology indices. India's benchmark BSE Sensex may also see higher volatility as investors respond to OYO's listing.

Conclusion

As OYO readies its third attempt at an IPO, its growth path, strategic collaborations, and market sentiment will be instrumental factors in deciding the success of its IPO. Investors must carefully follow updates on OYO's IPO plans and take into account the wider implications for the Indian stock market.