Oravel Stays Ltd., the parent company of Oyo Hotels, backed by SoftBank Group Corp., is preparing for an initial public offering (IPO) that could generate up to $800 million in Mumbai, according to sources familiar with the situation. The company is collaborating with multiple banks, including Axis Bank Ltd., ICICI Securities Ltd., and the Indian branches of Goldman Sachs Group Inc. and Citigroup Inc., to facilitate the share sale. The names of the sources have not been disclosed due to the confidential nature of the information. A draft prospectus is expected to be filed later this year, with the potential for additional banks to be involved.
The IPO is anticipated in 2026 and is likely to consist of both new and existing shares, valuing Oravel Stays between $7 billion and $8 billion. The details regarding the size, timing, and valuation of the offering are still being finalized and may change. Goldman Sachs declined to comment, while Oyo and the involved banks did not immediately respond to requests for information.
Previously, in September 2021, Oyo submitted draft IPO documents to the Securities and Exchange Board of India for an offering valued at ₹8,430 crore (approximately $950 million). However, the regulator returned these documents in 2023, requesting updates with current information.
In its latest fiscal year, Oyo reported a revenue increase of 16%, reaching ₹6,253 crore, with a net income of ₹240 crore. Founded by Ritesh Agarwal in 2012, the company has served over 100 million customers in 35 countries as of March 31. Oyo’s portfolio includes brands such as Oyo, Motel 6, Townhouse, Sunday, and Palette.
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Published on September 25, 2025.
