Budget hotel chain OYO Hotels’ parent company, Oravel Stays, now renamed PRISM, has reportedly pre-filed its draft red herring prospectus (DRHP) with capital markets regulator SEBI through the confidential route. PRISM is the nineteenth company to opt for the confidential pre-filing mechanism to list its shares on the stock exchanges, following firms such as Zepto, PhonePe, PhysicsWallah, Tata Capital, Meesho, Groww, boAt and Shiprocket, among others.

OYO’s parent plans to raise up to ₹6,650 crore through a fresh issue of equity shares, targeting a valuation of $7-8 billion, subject to regulatory approvals and market conditions. As per the report, shareholders cleared the fundraising plan at an extraordinary general meeting held on December 20, 2025.

In an exclusive interaction with Fortune India in June this year, OYO founder Ritesh Agarwal had said the company remained focused on staying IPO-ready, with an independent board, robust governance and high-quality earnings. The final decision on a public offering, he added, will rest with OYO’s board once these foundations are firmly in place.

“Ultimately, it’s a decision for our board, but given the significant profits we’ve generated, we no longer require external capital to drive our growth,” Agarwal had said.

“Our focus is on keeping the company IPO-ready—with an independent board, strong governance and high-quality earnings. Once that foundation is in place, it will be up to the board to decide the right time for a public offering,” explained the CEO of the hospitality company.

Notably, OYO became the most profitable Indian startup in FY2024–25, posting a profit after tax (PAT) of ₹623 crore, as Agarwal revealed during a town hall with employees last month. The company’s FY25 PAT surged 172% from ₹229 crore in the previous year. Revenue rose 20% year-on-year to ₹6,463 crore, driven by strong demand.

On the operating front, the company reported adjusted EBITDA of ₹1,132 crore in FY25, up 27% from ₹889 crore in the year-ago fiscal.

The travel-tech platform also reported a 54% rise in gross booking value (GBV) to ₹16,436 crore, driven by premium offerings under its Company-Serviced Portfolio, including mid-segment Townhouse Hotels and SoftBank- and Oravel-promoted Sunday Hotels, across India, the UK and the South East Asia and Middle East (SEAME) region, as well as the integration of G6 Hospitality.

Will OYO be third-time lucky?

This is not PRISM’s first brush with the public markets. The latest confidential IPO filing by PRISM, the parent of OYO, marks yet another attempt by the SoftBank-backed hospitality major to tap the capital markets—after two earlier efforts failed to materialise.

The company initially filed draft IPO papers in 2021, targeting a valuation of around $12 billion. However, the plan was shelved amid severe global market volatility triggered by the Covid-19 pandemic and later compounded by the Russia-Ukraine conflict.

OYO revived its listing ambitions in 2023, submitting a revised draft red herring prospectus (DRHP) to market regulator SEBI and signalling an intention to launch the IPO that year. However, the proposed issue failed to take off, and the company eventually withdrew its IPO application on May 17, 2024.

Reports later suggested that OYO was eyeing a market debut by October 2025, which was delayed due to renewed market volatility following tariff measures announced by the U.S. President Donald Trump-led administration.