OYO parent Prism files updated DRHP for IPO, looks to raise ₹6,650 crore via fresh issue only

Prism, the parent company of global travel-tech unicorn OYO, has moved a step closer to its stock market debut by filing an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (Sebi) after receiving regulatory approval for its confidential IPO filing earlier this month.

The proposed IPO consists solely of a fresh issue of equity shares worth up to ₹6,650 crore, with no offer for sale (OFS) component. As per the IPO paper, the parent of budget hospitality chain OYO may also undertake a pre-IPO placement of up to ₹1,330 crore, which would proportionately reduce the size of the fresh issue if completed.

The Ritesh Agarwal-led company is currently estimated to be valued at around $7-8 billion.

As the offering is entirely a primary issuance, existing investors - including SoftBank, Ritesh Agarwal, Microsoft, Airbnb, Peak XV Partners, Lightspeed, Greenoaks Capital and Khazanah Nasional - will not be offloading any shares in the IPO.

According to the filing, PRISM intends to allocate ₹4,987.5 crore from the net proceeds towards repayment or prepayment of certain outstanding borrowings, with the balance earmarked for general corporate purposes.

Earlier this month, the company received Sebi's approval for the public issue. PRISM had filed its draft IPO documents through the confidential filing route in December 2025, following shareholder approval to raise up to ₹6,650 crore through a fresh issue of shares.

In September 2025, the company rebranded its parent entity as Prism to bring its rapidly expanding global portfolio under a unified corporate structure. The portfolio spans diverse hospitality and travel segments, including brands such as Motel 6, Belvilla, DanCenter, Studio 6, Innov8 and Weddingz.in.

In an exclusive interview with Fortune India earlier this year, OYO founder and CEO Ritesh Agarwal said the move signals an evolution aligned with shifting consumer behaviour, positioning Prism as a premium umbrella while retaining OYO’s brand strength.

“We started the business over a decade ago with a strong focus on providing clean and comfortable accommodation in the budget segment, where there was a clear gap in branded offerings. Over time, as customer aspirations and incomes have grown, we have seen strong demand for premium and mid-market travel experiences.”

Over five years, OYO clawed its way back from a staggering loss of ₹3,936.8 crore in FY21 to sustained profitability. Losses narrowed to ₹1,941.6 crore in FY22 and further to ₹1,286.5 crore in FY23, reflecting steady financial repair. By FY24, the company had returned to the black with a net profit of ₹229.6 crore. Momentum continued into FY25, when profit after tax rose 7% year-on-year (YoY) to ₹244.8 crore, supported by stronger revenue realisation, tighter cost management and operational restructuring undertaken over the past few years.

For FY25, OYO reported revenue of ₹6,325.9 crore, registering a 14% increase from ₹5,541.6 crore in FY24, driven by expansion in premium stays, international markets and improved pricing discipline. Total sales also rose 16% YoY to ₹6,252.8 crore, aided by stronger operating traction across business segments.

On the operating front, EBITDA stood at ₹942.1 crore in FY25, maintaining positive momentum after turning profitable in FY24. Although EBITDA declined 26% year-on-year due to higher growth investments, it marked a significant improvement compared with losses recorded in earlier years.

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