What is the valuation that Oyo would look at for its proposed IPO?

Oyo is yet to finalize the price of its IPO but as per early estimate it looks like they may be targeting a valuation of around $9 billion. Of course, one can argue that Oyo has struggled during the pandemic but it is expected to charge $9 billion for a very strong leisure and hotel franchise that it runs. Oyo is based on the Airbnb model in the US.

Oyo is backed by Softbank of Japan and SEBI approval is awaited, after which the roadshows are expected to start. Oyo had touched valuations of $10 billion in 2019 but COVID has not been too kind to these contact-intensive industries like hotels, travel and tourism. Perhaps, Oyo may offer a 15% discount to woo investors.