Oyo delays IPO to 2026 after SoftBank pushback, targets $7 bn valuation

Indian budget hotel chain Oyo is delaying its third IPO attempt amid opposition from largest shareholder SoftBank and market volatility, aiming to now list by March 2026 at a valuation of $7 billion, Bloomberg News reported on Friday. 

SoftBank does not favor Oyo's plan to list in October and has pressed the company to hold off on a public offering until its earnings are stronger, people familiar with the matter told Bloomberg News, asking not to be identified as the information is private. 

Oyo and SoftBank did not immediately reply to a Reuters request for comment. India's blue-chip Nifty 50 is up about 3 per cent this year, but remains some over 7 per cent lower than the all-time high it hit in October last year. 

Last week, LG Electronics' Indian unit decided to postpone its IPO by a few quarters, Reuters reported, while e-scooter maker Ather Energy downsized its IPO and slashed its valuation by half amid the market volatility. 

Oyo founder Ritesh Agarwal had urged for a quick IPO to meet conditions related to a restructured $2.2 billion loan he secured in 2019 for raising his stake in the company, the report said. 

The loan, personally guaranteed by SoftBank founder Masayoshi Son, had a payment deadline for the first installment in December, with lenders indicating they may extend the repayment timeline if Oyo is listed this year. 

However, SoftBank may help Agarwal get an extension on the loan in exchange for delaying the IPO, the report added. 

Oyo had filed to go public for the first time in 2021, and was seeking a valuation of up to $12 billion. It renewed its plans in March 2023 by confidentially filing its papers with the SEBI, before delaying the issue last May.