Hospitality technology company Oyo, operated by parent company Prism, has reportedly secured approval from the Securities and Exchange Board of India (Sebi) for its proposed initial public offering (IPO). According to sources, the company plans to raise Rs 6,650 crore through the fresh issue and is expected to submit its updated draft red herring prospectus (DRHP) within the next six to eight weeks.
The development marks a significant step forward in Oyo’s long-awaited public listing journey. The Gurugram-based company confidentially filed its draft IPO documents in December, making this its third attempt to enter the public markets.
Sebi had earlier returned Oyo’s first IPO application in 2021 and asked the company to refile the proposal with updated financial information. Subsequently, Oyo submitted a revised application for a substantially smaller public issue. While the company initially planned a $1.2 billion IPO, its latest confidential filing reportedly proposes an issue that is 40% to 60% smaller.
In 2024, Oyo withdrew its previous draft prospectus and chose to raise private capital instead of proceeding with the public offering. The company now aims to capitalize on improved financial performance and favorable market conditions as it revives its listing plans.
According to sources, Oyo is targeting a valuation of approximately Rs 50,000 crore to Rs 60,000 crore ($5 billion to $7 billion) through the IPO. However, the final valuation will depend on prevailing market conditions and investor sentiment at the time of listing.
The proposed valuation represents a notable improvement from the company’s most recent fundraising round. In 2024, Oyo raised capital at a valuation of approximately $2.3 billion, significantly lower than its peak valuation of $9 billion achieved during a 2021 funding round led by Microsoft.
The company has also demonstrated strong financial improvement. During the April-June 2025 quarter, Oyo reported a net profit exceeding Rs 200 crore. According to an email sent by founder and chief executive Ritesh Agarwal to the company’s management committee and shareholders, the hospitality firm more than doubled its profit from Rs 87 crore reported during the corresponding quarter of the previous fiscal year.
Beyond profitability, Oyo has continued to expand its global footprint through strategic acquisitions. In 2024, the company acquired G6 Hospitality, the operator of the Motel 6 chain in the United States, in a deal valued at $525 million. The acquisition strengthened Oyo’s presence in the North American hospitality market and aligned with its broader international growth strategy.
The combination of improving profitability, global expansion, and renewed investor confidence appears to have strengthened Oyo’s position ahead of its anticipated stock market debut. As the company prepares its updated filing, investors will closely monitor its financial performance, valuation expectations, and future growth plans.
Supported by stronger financial results, strategic international acquisitions, and a more disciplined growth approach, the company is positioning itself for a successful market debut. If market conditions remain favorable, the IPO could become one of the most closely watched public offerings in India’s hospitality and technology sectors.
