OYO delays IPO for 3rd time amid market volatility, SoftBank concerns: Report

Budget hotel chain OYO Hotels' parent company, Oravel Stays Ltd., which was planning to list on stock exchanges in October 2025, has delayed its third attempt to launch its initial public offering (IPO).

The delay is reportedly due to market volatility in the wake of tariff policies initiated by the US President Donald Trump-led administration and objections from its largest shareholder, SoftBank, which reportedly believes the listing should happen once earnings improve, according to a Bloomberg report citing people familiar with the matter. Neither OYO nor SoftBank has confirmed these claims, and both are yet to release an official statement.

As per the report, OYO Founder and Group CEO Ritesh Agarwal wanted to push for a public listing this year to start the repayment of a $2.2 billion loan taken from lenders. The loan was secured in 2019 to increase his stake in OYO.

With SoftBank founder Masayoshi Son supporting him, Agarwal may likely get an extension on his first loan instalment, which is due in December 2024.

SoftBank-led Vision Fund's stake in OYO exceeds that of Agarwal, who owns a 30% shareholding in the company. After filing preliminary IPO papers in 2021 at a $12 billion valuation, OYO submitted a revised draft red herring prospectus (DRHP) with the market regulator SEBI and intended to launch a public issue in 2023. However, the IPO request was withdrawn on May 17, 2024, after SEBI asked the Ritesh Agarwal-led company to refile its draft papers with certain changes.

OYO’s platform assists entrepreneurs and small businesses in the hospitality sector by providing full-stack technology to boost earnings and streamline operations. The hotel aggregator’s financials show a net profit of ₹114.64 crore for the financial year 2023-24, marking a turnaround from a net loss in FY 2022-23. However, operational revenue dipped 15% to ₹1,112.83 crore in FY24, compared to ₹1,312.61 crore in the previous year.