Nuvama Wealth acquires shares worth ₹100 crore in Ritesh Agarwal's OYO

OYO's parent company, Oravel Stays, saw shares sold at ₹53 each, totaling ₹100 crore in a Nuvama Wealth deal.

Nuvama Wealth and Investment Limited has acquired shares worth 100 crore in OYO's parent company Oravel Stays Limited at ₹53 apiece, on behalf of its investors, a number of family offices, in a secondary market deal, PTI reported.

Nuvama Wealth and Investment Limited paid ₹53 per share for shares worth ₹100 crore in Oravel Stays Limited, the parent business of OYO, on behalf of its investors, a number of family offices. (REUTERS)

The travel tech unicorn's shares, which were sold for ₹53 each, are valued at USD 4.6 billion.

"These shares are being offered by OYO's early investors, presenting an opportunity for partial exits while potentially introducing new strategic investors to the company's cap table," PTI reported citing sources

A capitalisation table, often known as a cap table, is a table-like document that lists the owners of a business. Stock, convertible notes, warrants, and equity ownership awards are among the securities or shares listed.

According to the PTI report, talks are also in an advanced stage with other possible purchasers, such as Incred, who are looking into purchasing stakes in the hospitality major at secondary market prices between ₹53 and ₹60 per share, which translates to a possible valuation of up to USD 5.2 billion.

According to the report, even if the valuation has been rising, it is still far lower than the USD 10 billion that OYO was valued at during its height.

OYO recorded a profit for the first quarter of the fiscal year 2025. At an employee town hall, OYO's founder and CEO Ritesh Agarwal disclosed the company's preliminary net profit figure.

After reporting a loss of around ₹108 crore in the same period of the previous fiscal year, OYO turned a profit of about ₹132 crore in the first quarter of FY 2025.

The hotel aggregator firm recently revealed plans to pay $525 million in total cash for G6 Hospitality, the US operator of the iconic brands Motel 6 and Studio 6. For $27 million, the business also purchased CheckMyGuest, a Paris-based startup.

In addition to maintaining the stable outlook, Moody's Ratings improved the corporate family rating (CFR) of OYO's parent company, Oravel Stays Limited, the travel tech platform, and the rating on the senior secured term loan issued by its wholly-owned subsidiary, OYO Singapore, from B3 to B2.