OYO Parent PRISM Secures Sebi Approval For IPO, Valuation Pegged At $7-8 Bn

Global hospitality tech company PRISM, the parent entity of OYO, has secured approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), people aware of the development told Outlook Business.

The proposed public offering is expected to value the company at around $7 Bn to $8 Bn.

The development follows PRISM's confidential draft red herring prospectus (DRHP) filing with the market regulator at the end of December 2025. The filing came days after shareholders approved the proposal to raise up to INR 6,650 Cr through a fresh issue of equity shares at an extraordinary general meeting (EGM) held on December 20, 2025.

Following SEBI's nod, the company is expected to file its Updated Draft Red Herring Prospectus-I (UDRHP-I) in early July. Sources said PRISM is currently assessing market conditions and broader listing timelines as it prepares for the next stage of its IPO journey.

The company, which rebranded from OYO to PRISM last year, has appointed Axis Capital, Citibank, Goldman Sachs, ICICI Securities, SBI Caps, JM Financial, InCred Capital and Intensive Fiscal Services as book-running lead managers for the issue.

As it gears up for the public listing, PRISM has strengthened its board with the appointment of former SEBI Chairman Ajay Tyagi as an independent director. The company has also been expanding its footprint across key markets such as India, the US and Europe. A key part of this strategy was its $525 Mn acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6, from Blackstone Real Estate during the last fiscal year.

In line with its expansion plans, OYO has also launched a new premium hotels brand, CheckIn Hotels. The brand brings together premium hospitality offerings such as Sunday Hotels, Townhouse Hotels, Palette Hotels and other premium homes and experiences under a single umbrella, while OYO and other economy brands continue to be available on the OYO app.

Backed by the likes of SoftBank Group, Lightspeed Venture Partners, Peak XV Partners and Microsoft, PRISM operates across hotels, resorts, vacation rentals and coworking spaces.

According to the company's latest financial statements, its net profit rose 7% to INR 244.8 Cr in FY25 from INR 229.6 Cr in the previous year, while revenue grew 16% year-on-year to INR 6,252.8 Cr. This comes months after founder and chairman Ritesh Agarwal told employees in May that OYO's profit surged 172% year-on-year to INR 623 Cr in FY25, based on unaudited numbers. He had also said the company's operating revenue increased 16% to INR 6,252.8 Cr from INR 5,388.8 Cr in FY24.

For PRISM, this marks its third attempt at going public. The company first filed for an INR 8,430 Cr IPO in 2021 at a reported valuation of up to $12 Bn. However, the listing did not materialise after SEBI returned its draft papers in 2022 seeking updated disclosures, prompting the company to revisit its public market plans. It later filed a confidential DRHP in March 2023 for a smaller public issue, which it withdrew in May 2024 amid plans to refinance its debt and refile the offer documents.