OYO's Billion-Dollar Moves: Strategic Exits and New Acquisitions

Nuvama Wealth and Investment Limited acquired Rs 100 crore worth of shares in OYO's parent company, Oravel Stays Limited, suggesting new strategic investors. Valuation at Rs 53 per share reaches USD 4.6 billion. Discussions with other potential investors, including Incred, suggest a potential USD 5.2 billion valuation. OYO announced a net profit for Q1 FY2025 and plans significant acquisitions, including G6 Hospitality and CheckMyGuest.

Nuvama Wealth and Investment Limited has acquired shares worth Rs 100 crore in Oravel Stays Limited, OYO's parent company, at Rs 53 per share. This transaction, facilitated through a secondary market deal, marks an important move involving family office investors, according to reliable sources.

The acquisition has notably established OYO's valuation at a substantial USD 4.6 billion. This transaction has also provided an avenue for OYO's early investors to make partial exits while potentially welcoming new strategic investors into the company's cap table, which outlines ownership and securities within the company.

Further discussions are reportedly underway with other potential stakeholders, such as Incred, who are considering investing in the hospitality giant at Rs 53-60 per share, hinting at a possible valuation surge to USD 5.2 billion. Despite this upward trend, OYO's valuation remains significantly lower than its former USD 10 billion peak. However, recent announcements including its first-quarter net profit and plans to acquire G6 Hospitality and CheckMyGuest emphasize its ongoing strategic growth.

(With inputs from agencies.)