OYO Parent PRISM Clears ₹6,650 Cr IPO Fresh Issue, Shareholders Approve 1:19 Bonus

PRISM, the parent company of hospitality chain OYO, has secured shareholder approval to raise up to ₹6,650 crore through a fresh equity issuance as part of its initial public offering plans, the company said following an extraordinary general meeting held on December 20.

Shareholders also approved a bonus issue in the ratio of one bonus share for every 19 existing shares, with December 5, 2025 fixed as the record date. In addition, the EGM cleared an increase in authorised share capital to facilitate the proposed corporate actions linked to the public listing.

Listing Preparations

Shareholders backed the IPO resolution by an overwhelming majority, giving PRISM board-level flexibility to approach public markets when regulatory approvals are in place and market conditions are favourable. The EGM approvals remove a major procedural hurdle and put the company on a clearer path toward a public offering that management has been pursuing for several years.

The company has pointed to improving fundamentals as it prepares for a listing. Ratings agency Moody’s recently reaffirmed PRISM’s corporate family rating with a stable outlook and projected that the company’s EBITDA could more than double to about $280 million, or roughly ₹2,496 crore, in FY26. Management has also highlighted recent profit momentum, with OYO reporting consecutive profitable quarters and projecting stronger earnings ahead.

Operational Performance

Founder Ritesh Agarwal has flagged strong top-line momentum, pointing to sharp growth in revenue and gross booking value, as well as improved room utilisation driven by premium storefronts such as Townhouse and Sunday hotels. In a September communication to the company, Agarwal said the first quarter recorded a more than twofold rise in profit after tax compared with the previous year and highlighted double-digit same-store growth across segments.

The EGM resolutions follow earlier, at times controversial, capital-structure proposals and mark a more conventional path towards preparing the company for the scrutiny of public markets. A successful IPO would enable PRISM to tap retail and institutional liquidity at scale while crystallising investor value after several years of private fundraising and operational restructuring.