OYO Parent PRISM Files ₹6,650 Cr Fresh Issue IPO with SEBI

OYO's parent entity, PRISM, previously known as Oravel Stays Limited, has taken a significant stride towards its long-awaited public listing by filing an Updated Draft Red Herring Prospectus (UDRHP-I) with the Securities and Exchange Board of India (SEBI). This UDRHP, filed on June 30, 2026, outlines plans to raise ₹6,650 crore (approximately $796 million) entirely through a fresh issue of equity shares, with no Offer For Sale (OFS) component from existing shareholders. This structure means that all funds raised will flow directly into the company, rather than providing an exit route for early investors. A substantial portion of the IPO proceeds, specifically ₹4,987.5 crore, is earmarked for the repayment or prepayment of certain outstanding borrowings, primarily those related to the acquisition of US-based G6 Hospitality in December 2024. The remaining funds are intended for general corporate purposes. This focus on debt reduction highlights a strategic shift for the company, aiming to strengthen its balance sheet ahead of its market debut. Financially, PRISM has demonstrated a notable turnaround, reporting a net profit of ₹748 crore for the nine months ending December 31, 2025 (9M FY26). This is a significant improvement compared to previous fiscal years, and the company's revenue from operations for the same period stood at ₹6,941 crore. However, it's important to note that a considerable portion of this reported profit, approximately ₹559 crore in 9M FY26, originated from a non-cash deferred tax credit. Stripping out this accounting adjustment, the Profit Before Tax (PBT) for 9M FY26 was a more modest ₹245.2 crore, though still indicating a positive operational swing. The company also reported a significant increase in its Adjusted EBITDA margin to 28.35% in 9M FY26, up from 5% in FY23, showcasing improved operating efficiency. PRISM's business operations have also undergone a dramatic geographical shift. The latest filings reveal that OYO, once primarily an India-focused budget hotel chain, now derives a significant majority of its revenue from international markets. For 9M FY26, approximately 84% of its operating revenue was generated from outside India, with the United States emerging as its largest market, contributing 52.39% to its global Gross Booking Value (GBV). In contrast, India now accounts for less than 12% of OYO's total revenue. This global expansion has been driven by strategic acquisitions, including G6 Hospitality in the US (Motel 6 and Studio 6 brands) and European vacation home brands like Belvilla and DanCenter. The rebranding of Oravel Stays to PRISM in September 2025 was undertaken to reflect this expanded global portfolio and diversified offerings, encompassing not just hotels but also vacation homes, extended-stay properties, and hospitality technology solutions across more than 35 countries. Founder Ritesh Agarwal and major investors like SoftBank, Microsoft, and Airbnb are not participating in the Offer For Sale, signalling their continued confidence in the company's future. This IPO attempt is PRISM's third, following previous confidential filings and withdrawals in 2021 and 2024 due to evolving market conditions and internal restructuring. SEBI granted its approval for the IPO on June 2, 2026. The current filing is seen as a more mature and financially stable approach to public listing, focusing on balance sheet strength rather than hyper-growth. While the price band and IPO dates are yet to be announced, market observers anticipate the listing in the second half of 2026, subject to market conditions.

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