Oyo Parent Prism Eyes INR 6,650 Crore Fresh Issue in Updated IPO Filing
The parent of Oyo, Prism Hotels and Resorts, has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for an INR 6,650 crore IPO containing only a fresh issue of shares, without any offer-for-sale component.
Prism Hotels and Resorts, the parent company of Oyo, has submitted its revised UDRHP to SEBI and is now part of the public record. This brings the firm one step closer to the launch of one of India's most eagerly anticipated new-age technology IPOs. There would be no offer for sale (OFS) component in the proposed public issue; instead, it is a new issuance of equity shares up to INR 6,650 crore.
Not a single share will be sold during the IPO by current shareholders, including notable investors like SoftBank, Microsoft, and Airbnb. Also, prior to submitting the red herring prospectus (RHP), the firm might raise up to INR 1,330 crore in a pre-IPO placement. Once the pre-IPO round is over, the amount raised will be subtracted from the size of the fresh issuance.
How Prism will Utilise the Proceeds?
The company intends to use the INR 4,987.5 crore raised from the initial public offering (IPO) to settle or prepay existing debts, as stated in the revised draft prospectus. But the rest will go into the company's general operations. All of the funds from Prism's public offering will go into growing the business rather than rewarding current shareholders, which sets it apart from other recent tech IPOs.
Several prominent shareholders, including SVF India Holdings of SoftBank, Microsoft, Airbnb, Peak XV Partners, Lightspeed, RA Hospitality Holdings, Global Ivy Ventures, and InCred, have decided not to sell any of their shares in the proposed offering. Last September, the company changed its corporate name to Prism from Oravel Stays to better represent its global expansion in the hotel and coworking industries. With the debt reduced and more financial flexibility to support future expansion, the company's balance sheet is expected to be greatly strengthened by the proposed financing.
Financial Outlook of Prism
Throughout the first nine months of FY26, Prism demonstrated robust financial performance. Profit after taxes jumped to INR 748 crore from INR 245 crore in the prior fiscal year, and revenue from operations grew to INR 6,941 crore from INR 6,259 crore in FY25. From 953 crore to 2,127 crore, EBITDA increased by more than 100%. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) were INR 1,968 crore.
As of the end of 2025, the corporation had 243,303 hotels and 144,583 houses around the world. Nearly half of the company's domestic gross booking value (GBV) in India came from 1,573 company-serviced hotel shopfronts, up from 1,053 nine months ago. With over 84% of sales earned outside of India, the company's operation is still heavily influenced by international markets.
During the first nine months of FY26, 27% of revenue came from the US and 24% came from Europe. When Blackstone acquired G6 Hospitality in 2024, it greatly expanded the company's global reach. Motel 6 and Studio 6 are hotel brands in the US and Canada that are operated by G6.
