Oyo Parent Files Draft Papers with Sebi for ₹6,650 Crore IPO

PRISM, the parent company of Indian hotel chain and travel-tech firm Oyo, has confidentially filed draft IPO papers with the Securities and Exchange Board of India (SEBI) as it moves to tap public markets, seeking to raise up to ₹6,650 crore (about $800 million) through a fresh issue of equity shares, with no offer for sale (OFS). The public listing, if successful, is expected to value the company between $7 billion and $8 billion (roughly ₹58,000 crore to ₹66,000 crore).

They also approved resolutions for a bonus issue of equity shares and an increase in authorised share capital to facilitate the IPO and related corporate actions.

Management and Lead Managers

The first batch of book-running lead managers (BRLMs) that PRISM appointed for the IPO includes ICICI Securities, Axis Capital, Goldman Sachs, and Citibank. However, since filing, the company has reportedly expanded its syndicate to include additional banks. The purpose is to strengthen its underwriting and advisory base ahead of its market debut.

Despite repeated industry enquiries, PRISM has declined to comment publicly on the IPO filing or valuation details.

Historical IPO Attempts

This is at least the third documented attempt by PRISM (formerly Oravel Stays) to list publicly. PRISM first filed its IPO-related documents with SEBI in 2021. At that time, the valuation was much higher, at around $12 billion, with an offer size of approximately ₹8,430 crore.

A follow-up filing with updated financial and operational disclosures was made in 2023, but the plans were later withdrawn amid elevated global market volatility and unfavourable conditions.

The current move reflects a strategic reset toward market conditions that have improved for listings of profitable, capital-efficient tech-related firms in India.

Financial and Operational Highlights

In recent years, PRISM has managed to improve its financial books and is also exploring potential opportunities for expansion.

• In the first quarter of FY26, the company reported a net profit of over ₹200 crore and revenue of ₹2,019 crore, which shows a strong start to the fiscal year.
  
• The company raised capital in 2024 at a valuation of around $2.3 billion, compared with a peak valuation of $9 billion in 2021 led by Microsoft.
  
• Brokerage firm Moody has reaffirmed PRISM’s corporate family rating at B2 with a stable outlook. The brokerage firm has also projected EBITDA to more than double to about $280 million (₹2,496 crore) in FY26. The figures are backed by recent acquisitions and premium portfolio expansion.
  
• In the months before the filing, the company carried out bonus share issues: 1:1 in September 2025 and 1:19 in December 2025, steps companies often take to restructure their share capital ahead of major corporate moves.
  

Working on its growth strategy, the company is expanding its premium hotel offerings and strengthening its global presence through acquisitions such as the US-based G6 Hospitality, which operates the Motel 6 and Studio 6 economy lodging brands.

Market Context and IPO Route

The filing was made using SEBI’s confidential pre-filing route. Under the confidential method, details remain private until later stages. In contrast, in traditional IPO filings, the Draft Red Herring Prospectus (DRHP) is made public immediately upon submission to SEBI.

In recent times, many new-age startups have favoured this route to reduce market scrutiny ahead of formal IPO launches. Common names include Meesho, PhonePe, Swiggy, Groww, and Tata Play.

Challenges & Considerations

The current $7–8 billion valuation is below earlier ambitions. This shows how market and investor expectations have evolved.

Despite improving performance, global and domestic market conditions remain key factors that could influence IPO timing, pricing, and investor demand. Even with improved EBITDA and positive quarterly results, investors will likely examine margins, the sustainability of profitability, and competitive pressures in the hospitality and travel tech markets.

The SEBI review process for the confidential filing is ongoing. The regulator may require adjustments before a public DRHP is filed.

References:

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