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Oyo IPO is now delayed even after the third attempt to list on the stock exchange. The hospitality chain is dealing with market uncertainty along with opposition from its latest shareholder, Softbank. Now, Oyo is planning to list in 2026 with a $7 billion valuation.
reported that Softbank, which holds more than 40% of Oyo, advised the company to keep its IPO plans aside until its financial health shows a stronger improvement. This is the 3rd time Oyo has deferred its IPO. The first one was in 2021. The company planned to get listed in 2024, only to drop its IPO papers again in 2024.
The current market hasn't been favorable for companies planning to launch their IPOs, as capital markets have been flat amid rising international economic and geopolitical tensions, partly due to Donald Trump's foreign business policies. The rising India-Pakistan warlike scenario has affected investor sentiments.
Ritesh Agarwal, who holds almost 38% stake, was eager to launch an IPO to fulfill the conditions related to restructuring his $2.2 billion loan he took in 2019 to increase his stake in Oyo. This loan was guaranteed by Masayoshi Son, founder of Softbank, and had a 1st installment payment deadline in December.
Lenders were indicating an extension of the Oyo IPO to get listed in 2025. Here, Softbank may help Agarwal get the extension of the loan in exchange for delaying the IPO.
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