OYO Parent Prism Files Public IPO Papers for Rs 6650 Crore

The Indian startup ecosystem is witnessing renewed excitement. Hospitality-tech giant OYO’s parent company, Prism (formerly known as Oravel Stays), has officially taken the next big step towards its stock market debut.

Prism has filed its Updated Draft Red Herring Prospectus (UDRHP-I) with the market regulator, the Securities and Exchange Board of India (SEBI).

The company plans to raise a massive Rs 6,650 crore through this public issue. This filing comes right after SEBI gave its nod to the company’s confidential draft papers earlier this month. For millions of Indian retail investors and market observers, this is one of the most anticipated public listings of recent times.

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Key Takeaways

• IPO Size: The company aims to raise up to Rs 6,650 crore entirely through a fresh issue of shares.
• No offer-for-sale: Existing backers like SoftBank, founder Ritesh Agarwal, Microsoft, and Airbnb are not selling any of their shares.
• To Reduce Debt: Prism plans to use Rs 4,987.5 crore from the proceeds to pay off or prepay its outstanding debt.
• Turned Profitable: The Oyo parent IPO comes at a time when the company has turned profitable, reporting a net profit of Rs 748 crore for the first nine months of the financial year.
• Global Expansion: Prism now operates 43 brands across more than 35 countries, with a significant part of its business coming from the US and Europe.

The Third Time’s a Charm?

This is not the first time that the hospitality company has tried to enter the stock market. In fact, this marks the company’s third attempt at a public listing.

In 2021, Prism filed for an IPO for the first time. Back then the company’s aim was to raise Rs 8,430 crore at a valuation of around $12 billion. However, that attempt did not take off due to changing market dynamics. In 2023, the company attempted for an IPO again. However, in early 2024 it had to withdraw its papers. It was because tech stock sentiments were weak globally.

This time, things look different. The company has changed its corporate name to Prism. It has also waited for its financial health to stabilize before launching the Oyo parent IPO. The company is now eyeing a realistic market valuation of around $7 billion to $8 billion.

Reportedly Oyo may also undertake a pre-IPO placement of up to 13.3 billion rupees. This would result in a reduction in the size of the listing. The Oyo parent Prism’s shares are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Structure of the IPO: Fresh Issue vs. OFS

One of the most important details for everyday investors is how the IPO is structured. The proposed Rs 6,650 crore issue is a 100% fresh issue of equity shares. This means there is absolutely no Offer for Sale (OFS) component.

In a typical IPO, an OFS allows early investors or founders to sell their shares and take their money out. In this case, no existing shareholder is paring their stake. Prominent backers like SoftBank, Lightspeed Venture Partners, Peak XV Partners, Microsoft, and Airbnb are holding onto their shares. Founder Ritesh Agarwal is also not selling any of his personal holdings.

As per the filing, SoftBank-owned SVF India Holdings with a 40.04% stake remains the largest shareholder in Prism, Oyo’s parent firm. Including his direct stake and holdings through RA Hospitality and Patient Capital, Ritesh Agarwal’s aggregate shareholding amounts to 30.52%.

In total, Agarwal and SVF India Holdings – the promoters own 70.56% of the company’s pre-issue paid-up capital on a fully diluted basis. Because it is entirely a fresh issue, all the money raised will go straight into the company’s bank accounts. This is generally seen as a positive sign by the market.

It shows that the existing backers have confidence in the long-term growth of the business. Furthermore, Prism might also consider a pre-IPO placement of up to Rs 1,330 crore. If that happens, the total size of the public issue will be reduced accordingly.

Where Will the Money Go?

Prism has a clear plan for utilizing the cash it receives from the Oyo parent IPO. The majority of the net proceeds will be used to clean up its balance sheet.Going by the filed papers, the company will deploy Rs 4,987.5 crore to repay or prepay its existing borrowings.

As of late 2025, the company had substantial debt on its books. High debt results in heavy interest costs, which takes a hit on the operational profits. By paying down nearly Rs 5,000 crore of debt, Prism will significantly reduce its interest burden.

The remaining funds from the IPO will be utilized for general corporate purposes, including day-to-day business operations and future expansion plans.

A Look at the Financial Turnaround

The timing of the Oyo parent IPO aligns with a strong financial turnaround for the brand. The company faced criticism for several years as it was burning cash too fast during its aggressive global expansion phase. However, the latest financial numbers put forward a very different picture.

For the nine-month period ending December 31, 2025, Prism reported an impressive revenue from operations of Rs 6,941 crore. To put this into perspective, this nine-month revenue has already surpassed the company’s full-year revenue for the previous financial year, which stood at Rs 6,259 crore.

More importantly, the company’s bottom line has turned deeply positive. For those nine months ending December 31st 2025, Prism posted a net profit of Rs 748 crore. This number is more than three times the total profit reported for the entire previous fiscal year. Also, the rise in profits was boosted by a Rs 559 crore deferred-tax credit.

In addition to that, there was a significant increase in operating cash flow, generating Rs 1,594 crore. This improvement has caught the eye of credit rating agencies. S&P Global Ratings recently upgraded its outlook on Prism to “Positive”. The reasons cited by S&P were stronger cash generation and better earnings momentum.

Evolution into a Global Giant

Though most Indians know OYO as a homegrown budget hotel aggregator, the company has transformed into a massive global hospitality platform. Today, Prism operates 43 brands across more than 35 countries.

India contributes to less than 12% of Oyo’s revenues. This figure dropped from nearly 30% just a few years back. Interestingly, the company now derives as much as 84% of its operating revenue from markets outside India. A huge driver of this international growth has been its business in the United States.

Prism made a major move by acquiring G6 Hospitality, which operates the popular Motel 6 and Studio 6 brands in the US and Canada. The US business contributed significantly to the global gross booking value (GBV).

Out of the global GBV of ₹22,946.25 crore, the US contributed the most with ₹12,022.51 crore. This comes to 52.39 per cent of total global bookings. Alongside the US, the European vacation homes division remains another massive pillar of growth for the firm.

When it comes to India, the company has shifted its focus towards expanding its “company-serviced” hotel segment. The number of company-serviced storefronts in India grew to 1,573 by the end of December 2025. This stands as a proof that the company is aiming for better control over quality and user experience.

What Lies Ahead for Retail Investors?

With the updated papers now submitted to SEBI, the document will remain open for public comments for a mandatory period of 21 days. After reviewing any comments, the company will finalize its Red Herring Prospectus (RHP) and approach the Registrar of Companies.

Once those formalities are complete, Prism will announce the official price band and the dates for public bidding. According to market experts, if the broader market conditions remain stable, the listing could take place in the second half of the year.

The primary book-running lead managers for this IPO are Axis Capital, Citigroup, Goldman Sachs, and ICICI Securities. The company is being advised by this syndicate of top-tier financial institutions.

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Conclusion

The upcoming Oyo parent IPO is set to be one of the headline market events of the year. By opting for an entirely fresh issue and focusing heavily on debt reduction, Prism is presenting a conservative, growth-oriented face to public investors.

Its recent string of profitable quarters and dominant international presence provide a strong foundation. However, before making a final investment decision, retail investors should carefully go through the final valuation and price band once those details are announced.