OYO is preparing to launch its IPO. The hospitality start-up plans to file a DRHP (Draft Red Herring Prospectus) with SEBI by the first quarter of the next financial year, i.e., by June 24. This is Oyo's third attempt to go public after shelving the first two attempts.
This IPO will be followed by a shareholder restructuring involving founder Ritesh Agarwal along with debt financing to support the arrangement. Early investors like Lightspeed Venture Partners are planning to sell their stake.
Oyo Turned Profitable for the first time
Source: FINTRACKR
Oyo has become profitable for the first time in FY24. The start-up posted a consolidated profit of Rs 141.2 crore. This is a major reversal from the Rs 1,286 crore loss reported in FY 23.
Oyo’s cost-cutting has been one of the major reasons for gaining profitability in FY 24
The company slashed its Operating expenses by 8% from Rs 3137.27 crore in FY23 to 2885.44 crore in FY24.
Their Employee Costs were reduced by a whopping 51%, from Rs 1549 crores in FY 23 to Rs 744 crores in FY 24.
Finance cost increased by 23% to Rs 843.81 crores from 681.6 crores in FY23. This can be due to the possible refinancing of its loan & bonds done last year.
Depreciation and other expenses were also reduced by 28% & and 8%, respectively.
Thus Oyo’s Profit in FY 24 is a direct result of its cost-cutting measures
Also Read: Oyo Financial Performance Analysis FY 23-24.
Oyo Is Expanding Strategically
Oyo's recent expansion in India, the US, Europe, and Southern Asia has contributed to its recent performance. In 2024, Oravel Stays, the parent company of Oyo, acquired G6 Hospitality for $525 million in an all-cash deal. This acquisition is expected to contribute Rs 630 crore to EBITDA in its first year after integration. Its overall EBITDA can surpass Rs 2,000 crore by FY26.
Oyo Valuation
With a recent profitability of Rs 229 crore in FY 2024 and a profit of Rs 132 crore in the 1st quarter of FY 2025, the improved financial shape of Oyo has generated a positive valuation outlook for investors. A few years back, Oyo had a valuation of around $10 billion in 2021.
Currently, Oyo Valuation stands at $4 billion. The company IPO will be for around Rs $1 Billion, with a premium based on the valuation of $4 Billion.
Also Read: OYO IPO Details—Open Date, Price Band, GMP
How to Buy OYO Shares Before IPO?
Currently, Oyo is not listed in the stock market. However, investors can buy pre-IPO shares and own Oyo shares before they get traded in the listed market.
Interested investors can buy Oyo unlisted shares by clicking here. Investors can check the details of other pre-IPO shares at Stockify.
Oyo IPO FAQs
Q1: Is OYO getting listed in the stock market?
Oyo has filed its DRHP (Draft Red Herring Prospectus) with SEBI, and it is estimated to be listed by March 25.
Q2: Why did OYO withdraw its IPO?
Oyo withdrew its application due to material changes in finance and its plan to raise money privately.
Q3: Is it legal to buy unlisted shares of OYO in India?
Yes, this is 100% legal and safe to buy unlisted shares of Oravel Stays Ltd. (OYO Rooms). However, this is applicable when you buy Oravel Stays Ltd. (OYO Rooms) unlisted shares from reliable and known unlisted share dealers. You can request a quote or trade online at Stockify; we are ready to assist you.
