Introduction & Investment Opportunity: Study of Oravel Stays Limited
Introduction & Investment Opportunity: Study of Oravel Stays Limited
I am offering 1,000 shares of OYO (Oravel Stays Ltd.) at a price range of ₹55-₹56 per
share with market cap of Rs. 35100 Cr. This is a unique opportunity to invest in one of
India's most recognized and fast-growing hospitality brands before it scales further.
✅ Market Leader in Hospitality Tech – OYO has raised $3.47B, making it one of the
✅ Proven Financial Growth – Turned profitable in FY 23-24 with a ₹229.6 Cr net profit, a
highest-funded startups in the sector.
✅ Strategic Expansion – Operates in multiple markets with increasing market penetration and
significant turnaround from previous losses.
✅ High Pre-IPO Returns Potential – Investing now offers a chance to acquire shares at a
a scalable business model.
✅ Strong Industry Demand – The travel and hospitality industry is on a strong rebound,
lower valuation before OYO's IPO boosts its public market value.
A Pre-Market IPO (Pre-IPO Market) refers to the private trading of shares before a
company officially goes public through an Initial Public Offering (IPO). In this phase,
institutional investors, hedge funds, venture capitalists, and high-net-worth individuals
can buy shares before they are available to the general public.
PROS
CONS
● LACK OF LIQUIDITY
● UNCERTAIN IPO OUTCOME
● VALUATION RISKS
● DILUTION RISK
● REGULATORY & COMPLIANCE RICKS
● Revenue Growth: OYO reported a 5,541.6Cr revenue & Profit of 229.6 cr. in FY24
● Operational Profitability: Positive EBITDA in recent quarter is 5,388.8Cr with 23%
EBITDA MARGIN.
● Future Growth: Expansion into premium & mid-market segments; deeper
penetration into Tier 2 & 3 cities.
● Fair Valuation: Entry price of ₹55-₹56 offers potential upside based on projected
growth.
● IPO Prospects: Anticipated future listing could unlock further value.
● Strong Backing: SoftBank, Sequoia, and Airbnb among major investors.
● Market Sentiment: Positive momentum post-pandemic recovery
ACQUISITION BY OYO
CapTables of OYO
FOUNDER 6.20%
SoftBank 41%
FUND 3%
RA
HOSPITALITY 19%
ESOP 11.50%
OTHER 14.90%
DATA
UNAVAILABLE 2.00%
AIRbnb 1.18%
FIVE STAR
CAPITAL 0.92%
STUDY OF ORAVEL STAYS LIMITED