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OYO files updated IPO prospectus to raise up to 6650 crore via fresh shares, no OFS, funds mainly to repay debt, financials improve.
OYO files UDRHP for IPO
Hospitality technology platform OYO has filed its updated draft red herring prospectus (UDRHP) for an initial public offering (IPO), proposing to raise up to ₹6,650 crore through a fresh issue of equity shares.
The proposed public issue does not include an offer for sale (OFS), meaning none of the company’s existing shareholders will dilute their stake through the IPO.
1. Pre-IPO Placement On The Cards
Ahead of the public issue, OYO may raise up to ₹1,330 crore through a pre-IPO placement before filing its red herring prospectus (RHP). If the placement is completed, the amount raised will be deducted from the size of the fresh issue.
Earlier this month, the company received approval from the Securities and Exchange Board of India (SEBI) for the proposed IPO. OYO had confidentially submitted its draft papers in December 2025 after securing shareholder approval to raise up to ₹6,650 crore.
2. How The IPO Proceeds Will Be Used
According to the UDRHP, OYO plans to utilise ₹4,987.5 crore from the issue proceeds to repay or prepay outstanding borrowings. The remaining funds will be used for general corporate purposes.
3. No Exit For Existing Investors
The IPO has been structured entirely as a fresh issue, with existing investors choosing not to sell their holdings.
Major shareholders, including SoftBank’s SVF India Holdings, Microsoft, Airbnb, Peak XV Partners, Lightspeed, RA Hospitality Holdings, Global Ivy Ventures and InCred, are not participating in any share sale through the offering.
4. Financial Performance Improves
For the first nine months of FY26, OYO reported revenue from operations of ₹6,941 crore, an increase of around 11% from ₹6,259 crore in FY25.
The company’s profit after tax jumped to ₹748 crore, compared with ₹245 crore in the previous financial year.
EBITDA more than doubled to ₹2,127 crore from ₹953 crore a year earlier. EBITDA, excluding exceptional items, share-based payment expenses and other income, stood at ₹1,968 crore.
5. Expands Global Hotel Network
As of December 31, 2025, OYO operated 243,303 hotels and 144,583 homes across global markets. The company also had 14,937 company-serviced storefronts in India.
The number of company-serviced hotel storefronts in India increased to 1,573 by the end of December 2025 from 1,053 nine months earlier, highlighting the company’s continued expansion in its home market.
About the Author
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the I…Read More
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