OYO gets shareholders' approval for ₹6,650cr IPO
What's the story
OYO's parent company, Prism, has received shareholder approval for its initial public offering (IPO). The company plans to raise up to ₹6,650 crore through a fresh issue of equity shares. The decision was taken during an Extraordinary General Meeting (EGM) on December 20. Along with the IPO plan, shareholders also approved a bonus share issuance in the ratio of one fully paid-up equity share for every 19 existing shares held.
Market approval
Prism's IPO journey and financial performance
The EGM approvals are a major milestone in Prism's journey toward a public listing. The company, formerly known as Oravel, was rebranded in 2025. It has seen rapid growth under the leadership of founder Ritesh Agarwal since its inception in 2012. Moody's recently reaffirmed Prism's corporate family rating with a stable outlook and expects its EBITDA to more than double to around $280 million (₹2,496 crore) in FY26.
Financial success
OYO's impressive growth and future plans
OYO has also witnessed significant financial growth. In Q1 of the current fiscal year, the company posted a profit after tax (PAT) of over ₹200 crore, more than doubling year-on-year from ₹87 crore in Q1 of FY25. The company's revenue also jumped 47% to ₹2,019 crore during this period. Agarwal attributed this growth to hotel openings and double-digit same-store growth as well as premiumization and improved room utilization.
Business strategy
OYO's strategic focus and market expansion
Agarwal emphasized that the bottom line has been driven by strong top-line performance in its premium brands such as Townhouse hotels and Sunday hotels, with disciplined cost management and a firm focus on customer experience. He also revealed that Prism is investing $10 million in marketing to drive customer adoption and expand website and My6 app capabilities in its US business.