OYO parent Prism files updated papers for Rs 6,650-Cr IPO
The company has not included any offer-for-sale component in the proposed public issue, meaning existing shareholders, including SoftBank's SVF India Holdings, founder Ritesh Agarwal, Microsoft, Airbnb, Lightspeed, and Peak XV, will not dilute their holdings through the IPO.
Hospitality technology company Prism, the parent of OYO, has filed updated draft papers with markets regulator Sebi to raise Rs 6,650 crore through an initial public offering (IPO), comprising entirely a fresh issue of shares.
The company has not included any offer-for-sale (OFS) component in the proposed public issue, meaning existing shareholders, including SoftBank's SVF India Holdings, founder Ritesh Agarwal, RA Hospitality Holdings, Microsoft, Airbnb, Khazanah, Lightspeed, Greenoaks Capital and Peak XV, will not dilute their holdings through the IPO.
According to the Updated Draft Red Herring Prospectus (UDRHP) filed on Tuesday, Prism may also undertake a pre-IPO placement of up to Rs 1,330 crore before filing the Red Herring Prospectus (RHP). If completed, the amount raised through the fresh issue will be reduced accordingly.
The company plans to utilise Rs 4,987.5 crore from the net proceeds towards repayment or prepayment of borrowings, while the remaining funds will be used for general corporate purposes.
Prism had filed its draft papers through the confidential pre-filing route in December 2025. This route allowed company to keep details of the offer, including its size, out of the public domain until a later stage. Earlier this month, the hospitality technology firm secured Sebi's approval to launch its maiden public offering.
The filing comes as the company reported a sharp improvement in its financial performance during the first nine months of FY26.
Revenue from operations stood at Rs 6,941 crore for the nine months ended December 31, 2025, exceeding the company's entire FY25 revenue of Rs 6,259 crore. Profit after tax (PAT) stood at Rs 748 crore during 9MFY26 as against Rs 245 crore in FY25.
OYO operator Oravel Stays was rebranded as Prism in September 2025.
Prism operates 43 brands across more than 35 countries. As of December 31, 2025, its network included 24,303 hotels, 124,668 homes and 144,583 listings, including 14,937 storefronts in India.
The firm's India company-serviced hotel business continued to expand, with storefronts increasing to 1,573 as of December-end from 1,053 at the end of March 2025. Gross Booking Value (GBV) from these hotels stood at Rs 1,346.45 crore during 9MFY26, compared with Rs 818.23 crore in FY25.
Prism said its US business has emerged as a key growth driver following the acquisition of G6 Hospitality, which operates the Motel 6 and Studio 6 brands. The US business recorded a GBV of Rs 12,022.51 crore during 9MFY26, up from Rs 4,712.83 crore in FY25, contributing over 52% to the company's global GBV.
In Europe, the company's homes and listings business expanded to 269,251 properties as of December-end, from 208,901 at the end of March 2025.
Separately, S&P Global Ratings revised Prism outlook to "Positive" from "Stable" while affirming its 'B' issuer credit rating, citing improving profitability, stronger cash generation and the expected impact of the proposed IPO on the company's balance sheet.
Earlier this month, the Delhi bench of the Income Tax Appellate Tribunal (ITAT) quashed a Rs 3,885 crore tax demand against the company, ruling that share premium received on compulsorily convertible preference shares could not be taxed under the Angel Tax provisions.
The book running lead managers to the issue are Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, InCred Capital Wealth Portfolio Managers, Intensive Fiscal Services, JM Financial, and SBI Capital Markets.