Nuvama Wealth acquires ₹100 crore stake in Oyo’s parent company Oravel Stays – CNBC TV18

Nuvama Wealth & Investment Limited, formerly known as Edelweiss Securities, has purchased shares worth ₹100 crore in Oravel Stays Limited, the parent company of OYO, at a price of ₹53 per share through a secondary market deal.

Sources told CNBC-TV18 that the transaction values OYO at $4.6 billion. The company is reportedly seeking to raise an additional ₹200 crore through secondary market deals, offering shares at prices between ₹53 and ₹60 per share. Potential investors, including InCRED, are in discussions about participating in this round.

The shares on offer are being provided by OYO’s early investors, allowing them to partially exit while allowing new strategic investors to join the company’s cap table.

Despite the rising valuation, OYO’s current $4.6 billion valuation remains significantly lower than its peak valuation of $10 billion.

CNBC-TV18 had earlier reported that OYO founder and CEO Ritesh Agarwal is set to increase his stake in the company. Through his affiliate entity, Red Spring Innovation Partners, Agarwal plans to invest ₹550 crore to acquire additional shares. Sources indicate that he intends to purchase $60 million worth of shares at a price of ₹42.60 per share, representing a 45% premium compared to his last share purchase in August 2024. This strategic move is expected to support OYO’s recent acquisition of the US-based hospitality chains Motel 6 and Studio 6.

OYO reported a profit of approximately ₹132 crore in the first quarter (April-June) of fiscal year 2025 (FY25).