Oyo Delays IPO Amid SoftBank Concerns

Hospitality firm Oyo is delaying its planned October IPO due to objections from its primary investor, SoftBank. This situation represents the third time the Gurugram-based company has postponed its stock exchange listing.

According to a Bloomberg report, SoftBank has expressed concerns regarding the timing of the proposed IPO and has advised Oyo to wait until the company demonstrates stronger earnings before proceeding.

Oyo’s current IPO plan includes a fresh issue valued at Rs 7,000 crore and an Offer for Sale (OFS) of Rs 1,430 crore.

This decision follows Oyo’s report of a six-fold increase in net profit, reaching Rs 166 crore for the third quarter of FY25 (October-December). During the same period, the company achieved revenue of Rs 1,695 crore, marking a 31% increase when compared to the previous year.

Oyo achieved profitability for the first time in FY24, recording a net profit after tax (PAT) of Rs 230 crore. However, the firm saw a slight decline in revenue, with figures of Rs 5,389 crore in FY24 compared to Rs 5,464 crore in FY23.

In May 2024, Oyo opted to withdraw its draft IPO documents, which had aimed to raise up to $450 million through dollar bond issuance. The company’s initial IPO application from 2021 was returned by the stock market regulator in January 2023.