Oravel Stays Ltd., the SoftBank Group Corp.-backed company that operates Oyo Hotels, has hired several banks to arrange an initial public offering that may fetch as much as $800 million in Mumbai, according to people familiar with the matter.
The company, commonly known as Oyo, is working with Axis Bank Ltd., ICICI Securities Ltd., as well as the Indian units of Goldman Sachs Group Inc. and Citigroup Inc. on the share sale, the people said, asking not to be identified as the information is private. It’s likely to file a draft prospectus later this year and may add more banks, they said.
IPO likely in 2026
The IPO, expected in 2026, will probably comprise a mix of new and existing shares, and value the company at $7 billion to $8 billion, the people said. Deliberations are ongoing, and details including size, timing and valuation could change, they said.
Goldman Sachs declined to comment. Oyo, SoftBank, Axis, ICICI Securities and Citi didn’t immediately respond to requests for comment.
The company had previously filed draft IPO documents with the Securities and Exchange Board of India in September 2021 for an offering of ₹8,430 crore ($950 million), but the regulator returned the filing in 2023, asking the company to update it with new information.
Revenue growth
Its revenue rose 16% to ₹6,253 crore in its latest fiscal year, according to its annual report. Net income was ₹240 crore.
Founded in 2012 by Ritesh Agarwal, the company said in its annual report that it had served over 100 million customers in 35 countries as of March 31. The company’s brands include Oyo, Motel 6, Townhouse, Sunday, and Palette.
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