PRISM Seeks Shareholder Nod for Rs 6,650 Crore IPO

Global travel tech firm PRISM, the parent company of OYO, has called an Extraordinary General Meeting (EGM) on December 20 to seek shareholder approval for raising up to ₹6,650 crore through a fresh equity issue as part of the proposed listing, sources told Outlook Business.

OYO’s parent company is also seeking shareholder approval for a bonus issue, where investors will get one extra share for every 19 they already hold. The company has set December 5 as the date to decide who qualifies for these bonus shares, as per sources.

OYO had earlier introduced a highly unusual and complex bonus share plan, which triggered significant backlash from investors. Post this, the company eventually withdrew the plan.

The withdrawn proposal offered one Bonus Compulsorily Convertible Preference Share (CCPS) to shareholders holding at least 6,000 equity shares, leaving those with smaller holdings excluded. The plan also required shareholders to actively opt in within a short election window, a structure critics said disproportionately favoured certain investor groups while disadvantaging smaller shareholders.

The new plan, as per sources, follows PRISM’s decision to revisit and unify its earlier bonus structure based on shareholder and investor feedback. “The process will be automatic and will require no action from shareholders,” said a source.

While the exact timeline of OYO’s IPO is not known, as per media reports, expected to launch in early 2026, following the potential filing of its Draft Red Herring Prospectus (DRHP) in November 2025. The IPO could value the company at between $5 billion and $7 billion.

This isn’t OYO’s first attempt at going public. The company initially filed its draft red herring prospectus in September 2021, targeting a $1.2 billion raise at a valuation of around $11–12 billion, but later shelved the plan due to unfavourable market conditions. It made a second attempt by confidentially submitting IPO documents in 2023, though that too did not result in a public listing.

The company has also proposed increasing its authorised share capital from ₹2,431 crore to ₹2,491 crore to create enough room for the planned bonus issue and the fresh shares it intends to issue as part of the IPO, as per sources. For context, authorised share capital represents the maximum value of shares a company is legally permitted to issue.

In Q1 FY26, OYO posted a profit after tax of more than ₹200 crore, higher than the ₹87 crore it recorded in the year-ago period. The company’s revenue also rose sharply, increasing 47% year-on-year to ₹2,019 crore.