OYO Rooms, a prominent multinational lodge reservation platform, has firmly established itself in the hospitality industry since its inception. Despite facing significant challenges during the pandemic, OYO has demonstrated remarkable resilience and is poised for future growth.
The company reported a profit of ₹16 crore in Q1 FY2023, marking its first profit since the pandemic began. This improvement signals a positive trend in financial performance, indicating that OYO is on the path to recovery. Additionally, OYO’s total income increased by 14% in FY2023, reaching ₹5,602 crore, while net losses and adjusted EBITDA losses decreased significantly.
Oyo Launches its IPO
As OYO prepares to launch its IPO in the coming year, investors are eager to understand the potential for growth in OYO’s unlisted shares. The company has already filed its Draft Red Herring Prospectus (DRHP) with SEBI, aiming to raise ₹7,000 crore through a fresh equity issue. This upcoming IPO presents an exit opportunity for unlisted shareholders and could increase the OYO share price.
Valuation is another crucial aspect to consider. OYO’s market cap is currently estimated between ₹28,415 crore and ₹37,885 crore, based on the unlisted share price of approximately ₹35 per equity share. Although this valuation is lower than its peak of $9 billion in 2021, the company’s strategic advancements and financial milestones underscore its significant growth potential in the hospitality sector.
Expansion Plans
OYO’s market expansion efforts are also noteworthy. The company has a robust network effect and is exploring new markets, including the USA and China. This global expansion presents opportunities for increased revenue and potentially higher share prices. With authorised capital at ₹229.14 crore and paid-up capital of ₹41.27 crore, OYO is well-positioned to capitalise on market opportunities.
In conclusion, OYO Rooms’ unlisted shares offer an enticing investment opportunity for those willing to embrace the risks associated with unlisted shares. The company’s financial recovery, strategic expansion, and valuation make it an appealing choice for investors. With an expected IPO on the horizon, OYO’s unlisted stocks could see a significant rise in value, providing rewarding exit opportunities for shareholders.
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