Oyo postpones IPO plans for third time: Report

Hospitality firm Oyo is reportedly postponing its planned October IPO following objections from its major investor SoftBank. This marks the third time the Gurugram-based company has delayed its plan to get listed on the stock exchange.

According to a Bloomberg report, SoftBank has opposed the proposed timing and urged Oyo to delay its initial public offering until the company shows stronger earnings.

Oyo’s latest IPO consists of a fresh issue worth Rs 7,000 crore and an Offer for Sale (OFS) of Rs 1,430 crore.

The development comes even after Oyo reported six-fold increase in its net profit to Rs 166 crore for the third quarter of FY25 (October-December). The company’s revenue for the quarter was Rs 1,695 crore, a 31% year-on-year increase.

The company turned profitable for the first time In FY24 when it reported net profit after tax (PAT) of Rs 230 crore. However, the firm registered a revenue of Rs 5,389 crore in FY24, slightly down from Rs 5,464 crore in FY23.

In May 2024, Oyo withdrew its draft IPO documents, which had included plans to raise up to $450 million through the issuance of dollar bonds. The company’s initial IPO application, submitted in 2021, was returned by the stock market regulator in January 2023.