$2.2 Billion Ticking Bomb? OYO's IPO is postponed for the third time.
IPO Agony! In 2019, Ritesh Agarwal restructured a $2.2 billion loan that he secured to increase his stake in Oyo. One of the conditions of this loan was that Oyo launch its IPO.
Lender Warnings! The $383 million repayment is due in December 2025. If Oyo doesn’t go public by October 2025, creditors may push Agarwal to repay sooner. But an IPO this year could extend the deadline.
Who is stopping the IPO? SoftBank, which owns over 40% stake, has asked Oyo to postpone the IPO until earnings improve. Market volatility adds to these problems.
Silver Lining! The $2.2 billion loan is personally guaranteed by SoftBank founder Masayoshi Son. If Agarwal defaults, Son will cover the payment. He may negotiate a loan extension in return for postponing the IPO.
What do Numbers Say? Oyo achieved profitability in FY24. In FY25, it reported a net profit of ₹457 crore in the first 9 months, up from a loss of ₹111 crore last year. FY26 expectation is a profit of ~₹1,100 crore.
But,Valuation Dips! The company initially filed for an IPO in 2021, for a valuation of $12 billion. In March 2023, it filed again, only to delay until May 2024. Oyo now aims to debut by March 2026, targeting a valuation of over $7 billion.