Oravel refiles for a USD 702 mn IPO, with 75% of proceeds earmarked for debt repayment

Oravel — the parent of budget-hotel chain Oyo — has filed updated IPO papers with India’s market regulator to raise up to INR 66.5 bn (USD 702 mn). The entire issue is fresh capital: Japan’s SoftBank, which holds a 46% stake, and others, including Microsoft, Airbnb, and Malaysia’s Khazanah, are not offloading their stakes, according to a filing (pdf).

Why it matters: Oravel maintains a presence in the MENA market through its step-down subsidiaries in the UAE, Saudi Arabia, Bahrain, and Oman. The company has also been expanding its premium hotel brand SUNDAY Hotels in the Gulf, launching a 400-room SUNDAY Emirates Grand in Dubai and is planning 15 new SUNDAY hotels in the city. SUNDAY Hotels has also launched operations in Saudi Arabia, the UAE, and Bahrain.

Debt repayment: Oravel plans to use INR 49.87 bn (75% of the proceeds) for repayment or prepayment of its borrowings. The balance will go toward general corporate purposes.

Pre-IPO option: Oravel is also planning to raise up to INR 13.3 bn (USD 140 mn) through a pre-IPO placement before filing its final papers. Any amount raised through the placement will be deducted from the offer size.

Global footprint: The company operates 43 brands across more than 35 countries. Its network includes 24.3k hotels, 124.7k homes and 144.6k listings in India. Its US business expanded after Oravel acquired G6 Hospitality, which operates Motel 6 and Studio 6 in the US and Canada.

Advisers: Axis Capital, Citi, Goldman Sachs, ICICI Securities, InCred Capital, Intensive Fiscal Services, JM Financial, and SBI Capital Markets are bookrunning lead managers. MUFG Intime India is the registrar for the issue.

Market backdrop: Oravel is entering the IPO market during a slowdown phase — listings in India raised around USD 3.8 bn in 6M 2026, compared with USD 4.6 bn in the corresponding period last year.