Upcoming IPO: OYO IPO to hit Dalal Street within next 6-12 months
Oyo Hotels plans to launch an IPO on Indian stock exchanges within 6 to 12 months, following consistent profits over the last eight quarters. The startup reported a net profit of ₹229 crore in FY24, marking its first full-year profit in 12 years.
Upcoming IPO: Oyo Hotels is preparing to list on the Indian stock exchanges within the next six to 12 months, amid a strong profit trajectory.
"Given we are consistently posting profits for the last eight quarters, we are in a situation to announce IPO plans in the next 2-4 quarters," a source close to the matter told Mint. “We want to show a few more quarters of growth, with profitability guiding our IPO trajectory,” the person added.
Oyo's financial trajectory
The hospitality sector-based startup, led by Ritesh Agarwal, reported its first full-year net profit in its 12 years of operation in the financial year 2023-2024 (FY24).
Oyo reported its profit after tax of ₹229 crore in FY24 as against a loss of ₹1,286 crore in FY23. This was followed by a profit of ₹132 crore in the first quarter of FY25, which increased to ₹158 crore in the second quarter and further grew to ₹166 crore in the third quarter of the current fiscal year.
IPO-bound Oyo, which recently acquired the American budget hotel chain Motel 6, expects it to add substantially to its topline, with the company's EBITDA expected to cross ₹2,000 crore by 2025-26.
The travel tech startup estimates that Motel 6 will add over ₹630 crore to its EBITDA in the coming financial year, which will be the first full year of its integration.
Another attempt
Oyo attempted to launch its initial public offering (IPO) in 2021, but its draft application was returned by the stock market regulator Securities and Exchange Board of India (SEBI), in January 2023. The company later refiled a revised IPO application but reduced the size of the offer, only to withdraw it in May 2024.
The company is expected to refile its IPO papers with SEBI after refinancing its existing $450 million Term Loan B (TLB) at a lower interest rate.
A Bloomberg report earlier today said that Oyo is looking to speed up IPO plans as a year-end debt repayment deadline approaches. However, the company called the information regarding the financing arrangement and the so-called restructuring incorrect and just speculation or rumor-mongering.
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