The hospitality company OYO is anticipated to submit its Draft Red Herring Prospectus (DRHP) in November, valuing the firm at $7-8 billion.

The firm is expected to present the initial public offering proposal to its board next week.

The company announced that its board will decide on the IPO. Although we are unable to discuss any timelines concerning OYO's DRHP or IPO plans, this decision will be determined by OYO's Board of Directors and will be entirely at their discretion. Currently, OYO is assessing various strategic alternatives to enhance value for its stakeholders.

The travel technology platform has intensified its conversations with major banking partners recently, maintaining the company's valuation guidance at $7-8 billion (shares priced at Rs 70 each), which could be approximately 25-30 times the EBITDA.

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The submission to regulators is under consideration for November. In recent months, SoftBank has been in discussions with banks like Axis, Citi, Goldman Sachs, ICICI, JM Financial, and Jefferies in London to gauge market sentiment. Having evaluated market feedback, they now feel assured in their choice. Next week, the board will be approached as the company finalizes key strategic elements and solidifies the details.

SoftBank continues to be one of the biggest shareholders in OYO. Insiders suggest that the upcoming filing will highlight OYO's recent Q1 financial results, leveraging a phase of robust growth and enhanced fundamentals.

This has also been a double-digit growth quarter for the hospitality industry with strong tailwinds.

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OYO is working on the rollout of a new parent brand identity that will unify its expanding portfolio.

Earlier this year, OYO founder and CEO Ritesh Agarwal sought name suggestions for its parent entity Oravel Stays Limited via his social media platforms.