SEBI Clears OYO Parent Prism's ₹6,650-Crore IPO Plan Ahead Of Market Debut

Hospitality and travel technology company OYO's parent entity, Prism, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its proposed initial public offering (IPO). The public issue is expected to raise up to ₹6,650 crore through a fresh issue of equity shares, according to people familiar with the development.

The regulatory clearance comes nearly six months after Prism confidentially filed its draft IPO papers with SEBI in December 2025 under the regulator's pre-filing route, which allows companies to seek regulatory feedback before publicly disclosing detailed offer documents.

IPO Structure And Valuation Plans

The proposed IPO is expected to value Prism at approximately $7 billion to $8 billion, significantly lower than the nearly $12 billion valuation the company sought during its first IPO attempt in 2021.

Prior to filing the draft papers, shareholders approved the fundraising proposal at an Extraordinary General Meeting (EGM) held on 20 December 2025. They authorised the company to raise up to ₹6,650 crore through a fresh equity issue. Shareholders had also approved a 1:19 bonus share issue ahead of the listing plans.

Following the approval from SEBI, Prism is expected to submit an Updated Draft Red Herring Prospectus (UDRHP-1) within the next six to eight weeks, likely by early July 2026. The revised draft will be available for public review for 21 days, after which Prism can move closer to its market debut.

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Financial Performance Supports Listing Push

According to previously reported financials, in FY25, Prism recorded revenue of ₹6,253 crore, up 16% year-on-year. Net profit rose 6.6% to ₹245 crore. The company also reported 12 consecutive EBITDA-positive quarters. The performance was supported by growth in premium hotel offerings, acquisitions and technology-driven operations.

Prism IPO timing will ultimately depend on market conditions and investor sentiment. However, the company is widely expected to target a listing during the second half of 2026.

Sources:

Economic Times

India Today

Reuters

Outlook Business