KUBERGROW TEAM OYO has officially secured board approval for its IPO plans, and the buzz is now shifting to valuation. Banking partners and institutional investors are said to be discussing a figure of USD 7–8 billion (~INR 66,000 crore). At this level, the IPO price band works out to around INR 70 per share, translating to 25–30 times EBITDA.
The debate is far from settled. Analysts remain split, pointing to OYO’s history of fluctuating valuations. From a peak of USD 9.6 billion in 2021, the company’s private equity value dipped to as low as USD 2.3–3.8 billion in 2024. Critics argue the proposed multiples look steep when compared with listed hotel chains, while optimists highlight OYO’s global expansion, tech-driven platform, and steady debt reduction as reasons for optimism.
OYO has also restructured its business significantly in recent years. The company has exited non-core geographies, improved cash flows, and prioritized profitability over aggressive expansion. Its India operations are now contributing the bulk of revenues, while international markets continue to add scale and brand visibility.
Market watchers believe investor appetite will depend on how OYO positions itself against peers. While traditional hotel chains offer steady growth, OYO is expected to pitch its asset-light, technology-first model as a disruptor in the hospitality space. If the company can convince investors of sustainable profitability, the IPO may well attract strong subscription despite concerns over valuation.
With its DRHP filing expected by November 2025, OYO’s latest attempt to enter the public markets has set the stage for one of the most closely watched IPOs of the year.
