Oyo parent Prism filed an updated DRHP for a ₹6,650 crore IPO.
Entire fresh issue, with ₹4,987.5 crore earmarked for debt repayment.
Revenue and profit grew strongly, while no existing investors are exiting.
Oyo parent Prism Hotels and Resorts has filed its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI), moving a step closer to launching one of India's most anticipated new-age technology IPOs.
The proposed public issue comprises a fresh issue of equity shares worth up to ₹6,650 crore, with no offer for sale (OFS) component. Existing shareholders, including marquee investors such as SoftBank, Microsoft and Airbnb, will not sell any shares through the IPO.
1 June 2026
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The company may also undertake a pre-IPO placement of up to ₹1,330 crore before filing the red herring prospectus (RHP). If completed, the amount raised through the pre-IPO round will be deducted from the size of the fresh issue.
Earlier this month, Prism received SEBI's approval for the proposed IPO.
According to the updated draft prospectus, the company plans to utilise ₹4,987.5 crore from the IPO proceeds to repay or prepay outstanding borrowings, while the remaining funds will be used for general corporate purposes.
IPO To Focus On Balance Sheet Strengthening
Unlike several recent technology IPOs, Prism's public issue is structured entirely as a fresh issue, allowing all proceeds to flow into the company instead of providing exits to existing investors.
Shareholders such as SoftBank's SVF India Holdings, Microsoft, Airbnb, Peak XV Partners, Lightspeed, RA Hospitality Holdings, Global Ivy Ventures and InCred are not offloading any stake under the proposed issue.
The company, formerly known as Oravel Stays, changed its corporate name to Prism last September to better reflect its expanding global hospitality and co-working business.
The proposed fundraising is expected to significantly strengthen the company's balance sheet by reducing debt, while also providing greater financial flexibility to support future expansion.
Profitability Improves As Global Business Expands
Prism reported strong financial performance during the first nine months of FY26.
Revenue from operations increased to ₹6,941 crore from ₹6,259 crore in FY25, while profit after tax surged to ₹748 crore compared with ₹245 crore in the previous fiscal year.
EBITDA more than doubled to ₹2,127 crore from ₹953 crore a year earlier. Excluding exceptional items, share-based payment expenses and other income, EBITDA stood at ₹1,968 crore.
The company operated 243,303 hotels and 144,583 homes globally as of December 31, 2025. In India, company-serviced hotel storefronts increased to 1,573 from 1,053 nine months earlier, contributing nearly half of the company's domestic gross booking value (GBV).
International markets continue to dominate the company's business, with over 84% of revenue generated outside India. The United States contributed 27% of revenue during the first nine months of FY26, while Europe accounted for another 24%.
The company's international presence received a significant boost following the acquisition of G6 Hospitality from Blackstone in 2024. G6 operates the Motel 6 and Studio 6 hotel brands across the United States and Canada.
Rating Upgrade Ahead Of IPO
Alongside expanding internationally, Prism has continued to scale its company-serviced hotel business in India, where the number of such properties increased 49% by the end of December compared with March.
The improving financial profile has also received recognition from credit rating agencies. Earlier this month, S&P Global Ratings revised the company's outlook to 'Positive' from 'Stable' while affirming its 'B' issuer credit rating on its senior secured term loan.
