Prism, the parent company of OYO, has secured approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), marking its third attempt to go public. The company aims to raise up to ₹6,650 crore (approximately $703 million) through a fresh issue of shares, with no offer-for-sale component from existing shareholders like SoftBank, Microsoft, or Airbnb. This IPO is expected to value the company between $7 billion and $8 billion, a significant reduction from its targeted valuation of $12 billion in 2021.
Prism had initially filed confidential IPO papers in December 2025 and received shareholders' approval on December 20, 2025. Following SEBI's clearance earlier this month, the company is now preparing to file an updated draft red herring prospectus (UDRHP-1) by early July. This document will be open for public comments for 21 days. The company is currently assessing market conditions and broader listing timelines, which have been impacted by market volatility.
The proceeds from the IPO are primarily intended for the repayment or prepayment of borrowings, with ₹4,987.5 crore allocated for this purpose. Prism reported a profit of ₹748 crore and an EBITDA of ₹2,127 crore for the first nine months of FY26. For FY25, the company recorded a revenue of ₹6,253 crore and a profit of ₹244.8 crore. However, OYO's parent entity carries a significant debt burden exceeding ₹7,000 crore, with finance costs alone reaching ₹959 crore in FY25. The company recently reduced its outstanding Term Loan B balance to about $150 million through buybacks and is discussing refinancing this amount with dollar bonds, potentially extending the maturity to five years.
