OYO is preparing to file its Draft Red Herring Prospectus (DRHP) in November, with sources indicating that the SoftBank-backed hospitality firm is targeting a USD 7–8 billion IPO valuation.

The move comes as the company finalises discussions with top global banks and readies to showcase its improved financial performance and growth momentum in the upcoming filing.

The company is expected to approach its board with the proposal next week, people familiar with the matter said.

When reached out, a company spokesperson said, “While we cannot comment on any timelines related to OYO’s DRHP or IPO related plans, since it’s a decision that will be guided by OYO’s Board of Directors and will be solely at their discretion. For now, OYO continues to evaluate a range of strategic options to drive value for its stakeholders”.

Sources said that discussions with key banking partners, including Axis, Citi, Goldman Sachs, ICICI, JM Financial and Jefferies in London, have gathered momentum in recent weeks. Valuation guidance has now been pegged at USD 7 to 8 billion (around Rs 70 per share), potentially implying a multiple of 25 to 30 times EBITDA.

“The filing with regulators is being considered for November. After assessing market sentiment, OYO and its largest shareholder SoftBank are now confident about proceeding. The board will be approached next week as details are finalised,” one person close to the discussions said.

The prospective filing is expected to highlight OYO’s Q1 financial performance, which insiders describe as a period of strong growth and improved fundamentals, amid double-digit expansion across the wider hospitality industry.

In addition to its IPO preparations, OYO is working on a new parent brand identity that will consolidate its expanding portfolio. Earlier this year, founder and CEO Ritesh Agarwal sought suggestions for renaming Oravel Stays Limited via social media, with the final choice potentially becoming the group’s new corporate identity.

The company is also considering the launch of a separate app for its premium and mid-market to premium serviced hotels, a segment that has seen rapid growth in India and overseas.