OYO’s Rapid IPO Advancement: Ritesh Agarwal Drives Profit Surge, Seeks Swift SEBI Approval

OYO, led by Ritesh Agarwal, accelerates IPO plans amid profit surge, seeking expedited SEBI approval. Discussions include financial updates and $200M loan repayment.
OYO's Rapid IPO Advancement

OYO, under the leadership of Ritesh Agarwal, is swiftly advancing its IPO plans in response to a notable upsurge in profits, with a focused goal of securing accelerated approval from SEBI. This endeavour saw company executives and financial advisors engaging in discussions with SEBI officials to furnish comprehensive updates on OYO’s business performance and address any regulatory concerns.

During the deliberations with SEBI, OYO revealed a significant development involving a partial prepayment of $200 million towards its outstanding term loan B, along with the dissemination of comprehensive financial performance updates spanning the preceding four quarters.

Demonstrating a spirit of cooperation, OYO expressed its readiness to collaborate closely with SEBI, further highlighting its commitment to transparency and compliance. Notably, the company also underscored the favourable conditions prevailing in the capital markets, signalling its confidence in the timing of its IPO.

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Ritesh Agarwal, in an internal address to OYO employees, unveiled the company’s remarkable financial achievements, particularly highlighting the doubling of profits by OYO’s operator, Oravel Stays, in Q2 FY24. This milestone marked the first profitable quarter for Oravel Stays, showcasing a profit after tax (PAT) of ₹16 crore. Despite initial IPO filings in September 2021 under the entity name Oravel Stays, OYO encountered a regulatory request from SEBI for document refinements. 

Nonetheless, the company’s robust financial performance, including a notable 87.5% profit surge from Q2 to Q3 FY24, coupled with an optimized cost structure, sets a promising trajectory for OYO’s anticipated IPO. With an adjusted EBITDA projection of Rs 1,000 crore for FY24, OYO remains poised for a compelling market debut, reflecting its resilience and strategic growth initiatives.

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