OfBusiness IPO: Latest Update, Lot Size & Key Risks

OfBusiness revived its IPO plan. The company had earlier put its listing plans on hold, but it is now looking at raising up to $800 million (around Rs.7,600 cr) through an IPO. Reports suggest that OfBusiness could file its DRHP as early as November 2026. So, what is the latest update on the IPO, and how is the company doing before it prepares to enter the public market? Let us look in detail.

Latest OfBusiness IPO Details

OfBusiness is once again preparing for a public listing after its earlier IPO plans were put on hold, likely due to weaker market conditions. According to economictimes, the company is now looking at an IPO of up to $800 million. It is reportedly working with Axis Capital, Morgan Stanley, JPMorgan and Citigroup on the proposed issue. The company could file its Draft  Red Herring Prospectus (DRHP) as early as November 2026.

OfBusiness IPO Timeline

OfBusiness FY26 Financial Performance

The company has also been focusing on its core commerce business, where EBITDA increased to Rs.769 cr in FY26. The commerce business generated around Rs.390 cr in free cash flow, which is another number worth watching.

What Does OfBusiness Actually Do?

OfBusiness is not just another e-commerce company. It works mainly with businesses and SMEs, helping them to buy raw materials, access financing and manage supply requirements. Its categories include metals, chemicals, agri-products and other industrial materials. The company also has a lending business through Oxyzo Financial Services, which had an AUM of around  Rs.11,800 cr in FY26. This gives OfBusiness two major engines, which are B2B commerce and financial services.

OfBusiness IPO Strengths

1. Strong business scale

OfBusiness generated  Rs.20,645 cr in consolidated revenue in FY26. Although revenue declined 7% from FY25, the company says this was partly due to exiting lower-return businesses.

2. Profit is growing

Despite the fall in revenue, FY26 profit rose 21% to Rs.724 cr, compared with Rs.597 cr in FY25. Net profit margin also improved from 2.7% to 3.5%. This could be important, as it tells  that OfBusiness might be focusing more on profitability. 

3. Better margins in the core commerce business

In FY26, commerce business revenue reported Rs.19,174 cr, while EBITDA increased to Rs.769 cr from Rs.575 cr. Its EBITDA margin improved from around 2.6% to 4%.

4. Commerce business turned cash-flow positive

One of the stronger points ahead of the IPO is that the commerce business generated Rs.390 cr of free cash flow in FY26. Operating cash flow also increased to Rs.1,302 cr. Improving cash generation might be a good sign because it shows that the company is not just reporting profits on paper but could also be generating actual cash from its business. 

5. Growing international business

Exports more than doubled in FY26 to over Rs.2,500 cr, contributing around 12% of consolidated revenue. OfBusiness now exports to more than 70 countries.

OfBusiness IPO: Key Risk Factors

1. Revenue has actually declined

Ofbusiness revenue declined by 7% in FY26 from FY25. The company management says the decline came partly from exiting low-return businesses. Now, investors will likely see whether OfBusiness can return to revenue growth. 

2. Profit margins are still relatively low

Although margins improved, the company's 3.5% consolidated net profit margin is still not very high. That could mean even a relatively small increase in costs, commodity-price pressure or credit losses could affect profitability.

3. Commodity and working-capital risk

OfBusiness operates in areas such as metals, chemicals, agri-products and apparel. These businesses could be affected by commodity prices, inventory requirements and changes in demand. So higher revenue might not automatically mean higher profit.

4. Unlisted-share investors face a different risk

Before the IPO, investors buying OfBusiness shares in the unlisted market should remember that the unlisted price is not the IPO price. The eventual IPO price could be higher, lower or broadly similar to the prevailing unlisted-market price.

Who May Consider the OfBusiness IPO?

OfBusiness could interest investors who are comfortable with higher-growth businesses and moderate risk and have a long-term view. However, investors looking purely for listing gains may want to be more cautious. The final decision should come down to the IPO valuation, earnings, margins, cash flow and how the company compares with similar listed businesses.

Is the OfBusiness IPO Worth Watching?

Yes, but it could still be too early to make a call on the IPO price. OfBusiness has built a sizeable B2B business, reported Rs.20,645 cr revenue and Rs.724 cr profit in FY26, and improved its margins and cash generation. At the same time, revenue declined, and the business still operates on relatively thin margins.

With an IPO of up to $800 million reportedly being considered, the next major trigger is the DRHP filing. For investors, the real story will begin when OfBusiness puts a number on its valuation. Until then, the IPO looks interesting, but the price investors eventually pay will matter just as much as the business itself.

Check OfBusiness Unlisted Shares here