Future Growth Prospects for OYO Rooms Unlisted Shares

3 min readJun 10, 2024

OYO Rooms, a multinational lodge reserving platform, has been a good-sized player within the hospitality industry since its inception. OYO has captured a good-sized market share with a sturdy network effect and asset-mild business version. Despite facing demanding situations during the pandemic, OYO has shown signs and symptoms of financial healing and is poised for future growth.

As the company prepares to release its IPO in the coming 12 months, investors are eager to recognize the future boom possibilities for OYO Rooms’ unlisted shares. In this article, we will delve into the financial recovery, marketplace expansion, valuation, and destiny outlook of OYO Rooms, highlighting the capability for growth and profitability in the hospitality sector.

Financial Recovery

OYO reported a profit of ₹16 crore in Q1 FY2023, marking its first profit since the pandemic. This improvement in financial performance indicates a positive trend. The company’s total income also increased by 14% in FY2023 to ₹5,602 crore, while net losses and adjusted EBITDA losses decreased significantly.

IPO Expectations

OYO is expected to launch its IPO in the coming year, which could provide an exit opportunity for unlisted shareholders and potentially increase the OYO share price. The company has already filed its IPO DRHP with SEBI to raise a total fund of ₹7,000 crore through a fresh equity issue.

These factors collectively imply that OYO’s economic performance and strategic development have prepared the company for future growth, making its unlisted stocks an attractive funding opportunity for those inclined to take on the risks related to investing in unlisted shares.

Valuation

The current market cap of OYO is estimated to be between ₹28,415 crore and ₹37,885 crore based on the current unlisted share price of around ₹35 per equity share. Despite the lower valuation compared to its peak of $9 billion in 2021, the company’s strategic progress and financial milestones highlight its substantial growth potential in the hospitality sector.

Market Expansion

OYO has a strong network impact and is expanding into new markets, such as the USA and China, providing opportunities for growth and potentially higher share prices. The company’s authorized capital is ₹229.14 crore, with a paid-up capital of ₹41.27 crore. With a solid track record of profitability and strategic refinements, OYO is poised for future growth.

Future Outlook

With a solid track record of profitability and strategic refinements, OYO is poised for future growth. Investors are keeping a close eye on the company’s subsequent moves because it continues to bolster its market role and financial stability. The company’s gross booking value accelerated from ₹6,600 crore in FY21 to ₹8,100 crore in FY22.

The Growth Prospects

The travel industry is projected to grow at a 6.6% CAGR from 2021 to 2030, reaching US$1.9 trillion in 2030. OYO, with its robust network impact and asset-light business model, is well-positioned to seize a massive share of this boom. The company’s recognition of sustainable growth and profitability will help it maintain its market position and monetary stability.

Conclusion

OYO Rooms unlisted stocks provide a promising investment fund possibility for those willing to take the risks associated with investing in unlisted shares. The company’s economic healing, market enlargement, and valuation make it an appealing desire for traders. With an expected IPO in the coming year, OYO’s unlisted stocks should doubtlessly increase in value, presenting a rewarding exit opportunity for investors.