Hospitality technology company Prism, the parent of OYO, has filed updated draft papers with markets regulator Sebi for a Rs 6,650 crore initial public offering (IPO), comprising entirely a fresh issue of shares with no offer-for-sale (OFS) by existing shareholders, according to PTI. The proposed public issue does not include any share sale by existing investors, including SoftBank's SVF India Holdings, founder Ritesh Agarwal, RA Hospitality Holdings, Microsoft, Airbnb, Khazanah, Lightspeed, Greenoaks Capital, and Peak XV, meaning their shareholding will remain unchanged through the IPO.
IPO Structure and Use of Funds
According to the Updated Draft Red Herring Prospectus (UDRHP), Prism may also undertake a pre-IPO placement of up to Rs 1,330 crore before filing the Red Herring Prospectus (RHP). If completed, the size of the fresh issue will be reduced accordingly. The company plans to use Rs 4,987.5 crore from the net proceeds to repay or prepay borrowings, while the remaining funds will be used for general corporate purposes, PTI reported.
Prism had filed its draft IPO papers through Sebi's confidential pre-filing route in December 2025, allowing details of the public issue to remain private until a later stage. Earlier this month, the company received Sebi's approval to launch its maiden public offering.
| Use of Funds | Amount (Rs crore) |
|---|---|
| Repayment of borrowings | 4,987.5 |
| General corporate purposes | Remaining |
Financial Performance Improvement
The updated filing comes after the company reported a strong improvement in financial performance during the first nine months of FY26. Revenue from operations rose to Rs 6,941 crore during the nine months ended December 31, 2025, surpassing the entire FY25 revenue of Rs 6,259 crore. Profit after tax (PAT) stood at Rs 748 crore during 9MFY26, compared with Rs 245 crore in FY25. The OYO operator Oravel Stays was rebranded as Prism in September 2025.
| Metric | 9MFY26 | FY25 |
|---|---|---|
| Revenue from operations | Rs 6,941 crore | Rs 6,259 crore |
| Profit after tax | Rs 748 crore | Rs 245 crore |
Business Growth Drivers
Prism currently operates 43 brands across more than 35 countries. As of December 31, 2025, its network comprised 24,303 hotels, 124,668 homes, and 144,583 listings, including 14,937 storefronts in India. Its India company-serviced hotel business continued to expand, with storefronts increasing to 1,573 from 1,053 at the end of March 2025. Gross Booking Value (GBV) from these hotels rose to Rs 1,346.45 crore during 9MFY26 from Rs 818.23 crore in FY25.
The company said its US business has emerged as a major growth driver following the acquisition of G6 Hospitality, which operates the Motel 6 and Studio 6 brands. The US business recorded a GBV of Rs 12,022.51 crore during 9MFY26, compared with Rs 4,712.83 crore in FY25, contributing more than 52% of the company's global GBV. In Europe, Prism expanded its homes and listings business to 269,251 properties as of December-end from 208,901 at the end of March 2025.
Rating Upgrade and Tax Relief
Separately, S&P Global Ratings revised Prism's outlook to 'Positive' from 'Stable', while affirming its 'B' issuer credit rating, citing improving profitability, stronger cash generation, and the expected impact of the proposed IPO on the company's balance sheet. Earlier this month, the Delhi bench of the Income Tax Appellate Tribunal (ITAT) quashed a Rs 3,885 crore tax demand against the company, ruling that share premium received on compulsorily convertible preference shares could not be taxed under the Angel Tax provisions.
Lead Managers and Next Steps
The book-running lead managers to the issue are Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, InCred Capital Wealth Portfolio Managers, Intensive Fiscal Services, JM Financial, and SBI Capital Markets. The company expects to launch the IPO following regulatory clearances and market conditions.
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