OYO has moved on to the next step, the stock market. The hospitality firm’s parent, Prism, has filed a revised draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO). The company plans to raise Rs 6,650 crore fully through the issue of new equity shares.
An interesting feature of the proposed issue is that there is no offer for sale (OFS). This means existing shareholders, including founder Ritesh Agarwal, SoftBank, Microsoft, Airbnb, Peak XV, Lightspeed, Khazanah, Greenoaks Capital and other investors, will not be selling any shares as part of the IPO.
The updated filing comes months after Prism filed its confidential IPO papers with SEBI in December 2025, paving the way for the company’s long-awaited public listing.
New Capital to Be Pumped Into the Business
Prism’s public issue is entirely for raising fresh capital for the company and not for giving early investors partial exits, as is the case with many recent startup IPOs.
It has also kept the option to raise up to Rs 1,330 crore through a pre-IPO placement before filing the final red herring prospectus (RHP). If that fundraising is successful, the amount raised will reduce the size of the fresh issue.
According to the draft papers, Rs 4,987.5 crore of the IPO proceeds will be used to repay or pre-pay outstanding borrowings, while the balance will be used for general corporate purposes.
Earnings Growth Accelerates Ahead Of Listing
Prism enters the IPO process with a stronger financial profile.
Revenue from operations during the first nine months of FY26 stood at Rs 6,941 crore as against Rs 6,259 crore for the full year FY25.
Its profitability too has improved sharply. Net profit increased to Rs 748 crore in April-December 2025, up from Rs 245 crore in the last fiscal. EBITDA more than doubled to Rs 2,127 crore, thanks to better operating performance across its businesses.
International Business Still Drives The Growth
Prism, formerly Oravel Stays, is a much bigger entity today than its original budget hotel business. A technology-driven hospitality platform with 43 brands in more than 35 countries.
As of December 31, 2025, its network comprises more than 24,300 hotels, 124,600 homes and more than 144,500 listings, including nearly 15,000 shopfronts in India.
The company is so focused on overseas markets that more than 84% of its total revenue now comes from these operations.
G6 Hospitality owns the Motel 6 and Studio 6 brands, which were acquired by Prism in 2024 and the U.S. has been one of the biggest growth drivers. The US business registered a gross booking value (GBV) of Rs 12,022.51 crore in the first nine months of FY26 vis-à-vis Rs 4,712.83 crore in FY25.
The company’s India business also grew. Its hotel segment, which the company services, recorded GBV of Rs 1,346.45 crore in a nine-month period, compared with Rs 818.23 crore in the previous fiscal year.
Rating Upgrades Before Going Public
Prism has been given another boost ahead of its proposed listing, with S&P Global Ratings changing its outlook to ‘Positive’ from ‘Stable’ and affirming its ‘B’ issuer credit rating.
The ratings agency cited the company’s improving earnings and financial profile, which included stronger profitability and a healthier balance sheet.
From Startup To Global Hospitality Brand
OYO, founded in 2013 by Ritesh Agarwal, was launched to transform the budget hotel space in India. It grew rapidly through alliances, acquisitions and technology to cover parts of Asia, Europe and North America.
With the updated IPO papers filed, Prism is now closer to going public. The company intends to use the new cash mainly to pay down debt and strengthen its balance sheet and to set the stage for the next phase of growth. The IPO is expected to be one of the most watched new-age technology listings in the Indian market.
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Priyanka Roshan is a business writer and assistant editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.
With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Moneycontrol, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.
