OYO parent Prism has filed new papers for ₹6,650cr IPO
What's the story
Prism, the parent company of hospitality giant OYO, has filed updated draft papers with the Securities and Exchange Board of India (SEBI) for a ₹6,650 crore initial public offering (IPO). The proposed IPO will be entirely through a fresh issue of shares and does not include any offer-for-sale (OFS) component. This means existing shareholders like SoftBank's SVF India Holdings and founder Ritesh Agarwal won't dilute their stakes in this round.
Fund strategy
Prism may conduct pre-IPO placement
Prism has also hinted at a pre-IPO placement of up to ₹1,330 crore before filing the Red Herring Prospectus (RHP). If this is done, it will reduce the amount raised through the fresh issue. The company plans to use ₹4,987.5 crore from net proceeds for repayment/prepayment of borrowings while using the rest for general corporate purposes.
Growth trajectory
Company's financials for FY26 so far
Prism has reported a significant improvement in its financial performance for the first nine months of FY26. Revenue from operations stood at ₹6,941 crore, which is higher than the company's entire FY25 revenue of ₹6,259 crore. Profit after tax (PAT) also saw a major jump to ₹748 crore during this period as compared to ₹245 crore in FY25. The company operates 43 brands across over 35 countries with a network of 24,303 hotels and 124,668 homes as of December-end.
Market growth
US business has become major growth driver
Prism's US business has become a major growth driver after acquiring G6 Hospitality, which operates Motel 6 and Studio 6 brands. The US business recorded a gross booking value (GBV) of ₹12,022.51 crore during the nine-month period ending December-end, contributing over 52% to the company's global GBV. In Europe, the homes and listings business grew to 269,251 properties as of December-end.