In a move that signals strategic ambition and market readiness, Oravel Stays Ltd. (OYO) has announced the acquisition of Key Flickers Pty. Ltd, an Australian entity, through a share swap arrangement. The development not only strengthens OYO’s global presence but also positions it for deeper integration of operational and tech capabilities ahead of its much-anticipated IPO.
The acquisition will be placed before shareholders for approval at an Extraordinary General Meeting (EGM) scheduled for 22nd May 2025. Instead of cash, OYO will issue 28,58,082 equity shares to acquire 100% equity of Key Flickers Pty. Ltd.
| Particulars | Details |
|---|---|
| Target Entity | Key Flickers Pty. Ltd (Australia) |
| Mode of Acquisition | Share Swap |
| New Shares to Be Issued | 28,58,082 |
| Share Valuation (per share) | ₹57.09 |
| EGM Date | 22-May-2025 |
| Post-Acquisition Share Count | ~695 Cr shares |
| Implied Valuation | ~₹40,000 Cr or $5 Billion USD |
This signals a clear preference for capital-efficient expansion, using equity to fund inorganic growth rather than drawing down cash reserves.
As per Ritesh Agarwal, OYO has posted a strong FY25, with a Profit After Tax (PAT) of ₹623 crore. This robust performance marks a turnaround from previous losses and validates its asset-light, tech-driven business model.
| Price per Share (₹) | Market Cap (₹ Cr) | P/E Ratio |
|---|---|---|
| ₹50 | ₹34,750 Cr | 55x |
| ₹60 | ₹41,700 Cr | 66x |
| ₹70 | ₹48,000 Cr | 78x |
Despite OYO’s rapid growth, excess supply in the unlisted market is capping price movement. The current P/E multiples suggest the market is pricing in significant future earnings expansion. Valuations are rich, but not unprecedented for companies in scale mode with a proven turnaround.
This acquisition highlights OYO's maturity as a platform and its capability to pursue cross-border expansion using equity instruments. With positive PAT, reduced burn, and improved operational metrics, OYO is entering FY26 with strong fundamentals.
However, with valuations already touching 55x P/E based on FY25 and 32x P/E based on FY26 ( unlisted price of INR 50 is taken for calculation ) , investors should tread with a balanced view—factoring in both growth prospects and valuation premiums.
Bottom Line
OYO is building momentum—financially and strategically. With this acquisition and an upcoming EGM, investors in the unlisted space should closely track developments that could influence its IPO pricing and investor appetite.
