OYO Unlisted Shares
BUY
₹47.50
SELL
₹50.50
About OYO Unlisted Shares
OYO, founded in 2012, is a global hospitality platform that helps hotel and property owners (Patrons) transform unbranded, under-utilized assets into digitally enabled storefronts. It provides customers with affordable, high-quality accommodation through its technology-driven ecosystem.
Two-Sided Business Model: OYO connects Patrons (hoteliers, property owners) with Customers (travellers, guests) through its platform. Patrons get access to OYO’s full-stack technology suite for revenue management, digital operations, and pricing optimization, while customers book through OYO’s direct channels (app, website) or third-party platforms.
Asset-Light Model: OYO does not own the hotels or properties listed on its platform. Instead, it partners with owners under flexible contracts where owners bear operational costs while OYO provides branding, technology, and demand generation. This model allows rapid expansion with minimal investment.
Global Market Presence: OYO operates in 35+ countries with over 157,344 properties, making it one of the largest hospitality networks. It has a dominant presence in India, Southeast Asia, and Europe, focusing on these as its core growth markets.
Expansion & Brand Offerings: OYO has diversified its offerings, launching Palette Resorts (premium segment) and expanding into vacation home rentals in Europe. It continues to scale its technology, partner network, and brand reach globally.
Bonus Issue Update: As per news reports, OYO’s board will evaluate a proposal for a 1:1 bonus share issue, meaning each shareholder will receive one equity share for every share held. Eligible shareholders must be listed in the company’s records on or before September 30, 2025. The bonus allocation will be drawn from the company’s free reserves, securities premium account, and other internal reserves as of March 31, 2025. This would mark OYO’s second bonus issue since FY 2021-22, reinforcing its commitment to boosting shareholder value.
Pros
- Steady Profit Growth: EBITDA steadily increasing, expected to reach $135 million in FY25, driven by cost-cutting and better management.
- Growing Travel Demand: Increased hotel occupancy rates (70% in FY24) benefiting from the bounce-back of the travel industry.
- Cost Efficiency: Effective reduction in staff and marketing expenses boosting profitability.
Cons
- Debt Challenges: Lack of secured funding for refinancing in the next 12-18 months could lead to financial strain.
- Risk of Losing Market Share: Competition and failure to meet growth targets could impact market position and profitability.
