SoftBank-backed hotel startup Oyo Hotels & Rooms has shortlisted JP Morgan, Kotak Mahindra Capital and Citi for an initial stock sale of more than $1.2 billion, a news website reported on Monday. finance, citing several industry sources.

All three investment banks were taken over recently, Moneycontrol reported, citing one of the sources.

Work on the initial public offering has begun, the report said, adding that the company is looking at a domestic market debut but has kept its options open.

Oyo did not immediately respond to a request for comment from Reuters while the three investment banks declined to comment.

Ritesh Agarwal, CEO and founder of Oyo, had said in July that its business was likely to return to levels seen before India’s second wave of COVID-19 infections and “grow from there”.

The hotel aggregator, in which SoftBank has a 46% stake and is one of its biggest bets, has suffered months of layoffs, cost cuts and losses during the global health crisis. However, with the easing of travel restrictions and the increase in vaccinations, travel demand is slowly picking up in India.

In July, Microsoft Corp was in advanced talks to invest in Oyo at a $9 billion valuation ahead of Oyo’s IPO, Reuters reported, citing a source familiar with the matter.