OYO's Unlisted Shares Suffer Amid Back-To-Back Delays In IPO - Here's What We Know So Far About Its Third Attempt

Oyo's attempt to go public has been anything but smooth, and this has taken a serious toll on its unlisted shares. The travel tech firm first filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) back in 2021 for a Rs 8,430 crore initial public offering (IPO). However, the company withdrew the offer in 2022, citing volatile market conditions.

In 2023, it made a second attempt through Sebi's confidential filing route. However, that plan was also shelved in 2024.

The back-to-back delays have not only cast a shadow on the company's listing prospects but also weighed heavily on its valuation in the unlisted space. According to Wealth Wisdom India Private Limited, a platform to trade shares of companies in the unlisted space, OYO's share price has declined by over 65 per cent since its first IPO attempt in 2021. In December 2021, the company's shares were commanding a price of Rs 130–140 apiece.

After the first withdrawal, the company's shares saw a sharp correction. A brief bounce came during the second filing, but when that too failed, it led to an even sharper correction. As of now, its unlisted shares are trading at Rs 46 apiece, which means a market capitalisation of Rs 31,918 crore.

OYO's Third IPO Attempt – What We Know So Far

Oravel Stays Ltd, the parent company of global travel tech platform OYO, has reportedly started discussions with investment bankers again for a fresh attempt at launching its IPO.

"The company is engaging with both Indian and international banking institutions with plans to potentially file the DRHP documents between Aug-Sept this year. It is yet to decide whether to file with FY25 financial results or wait till the Q1 FY26 financials are audited and ready for filing," sources told news agency PTI.

A key meeting between the company's board and major shareholder SoftBank, which holds around 40 per cent stakes, is set for June in London, the report said.

OYO IPO Expected Listing Date: According to the PTI report, OYO is planning to list its shares by the fourth quarter of the current financial year (Q4 FY25). The report says OYO has set a target to file its DRHP around August-September of this year.

OYO IPO Valuation: The PTI report said that preliminary talks with investment banks suggest that OYO's upcoming IPO could be valued in the range $6 billion to $7 billion.

The third attempt comes amid a turnaround in its net profit, which is estimated at Rs 620 crore for FY25. Meanwhile, the company has also expanded its global presence in key markets like the United States, Europe, and Southeast Asia.