OYO Parent PRISM Gets SEBI Nod for ₹6,650 Cr IPO
As OYO moves closer to its stock market debut, the company is focusing on premium hospitality, international expansion and stronger earnings to enhance investor confidence ahead of the proposed ₹6,650 crore IPO.
Quick Summary
OYO IPO Details: PRISM, OYO's parent company, has received SEBI approval for its proposed ₹6,650 crore IPO. The hospitality technology firm is targeting a valuation of $7-8 billion and plans to file an updated prospectus by July. The issue is expected to be among India's largest and most closely watched technology IPOs.
OYO IPO Details: PRISM, the parent company of travel and hospitality platform OYO, has secured approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO).
The company plans to raise ₹6,650 crore through a fresh issue of equity shares. People familiar with the matter indicated that the offering could value the company between $7 billion and $8 billion.
The approval follows PRISM's confidential filing of draft IPO papers with the market regulator in December 2025. Prior to the filing, shareholders approved the fundraising proposal during an Extraordinary General Meeting held on December 20, 2025.
As part of the next phase, the company is expected to submit an Updated Draft Red Herring Prospectus (UDRHP-1) by early July. After filing, the document will be available for public review and comments for 21 days.
The confidential filing mechanism enables companies to begin regulatory discussions without immediately disclosing detailed financial and operational information. Updated offer documents are filed later once regulatory feedback has been incorporated.
How OYO is Improving Profitability Before Its Planned IPO
Over the last few years, OYO has worked towards improving its financial performance while expanding its footprint across domestic and international markets.
The company has increased its presence in premium hospitality through brands such as Sunday Hotels and Palette Hotels. It has also expanded its vacation rental business through DanCenter, its European subsidiary, which recently entered the Indian market with villa offerings in Goa.
In India, the company is also targeting opportunities in religious and pilgrimage destinations, a segment that has witnessed strong growth in travel demand.
Corporate governance initiatives have also been strengthened. PRISM recently brought former SEBI Chairman Ajay Tyagi onto its board as an Independent Director.
Meanwhile, credit rating agency Moody's reaffirmed the company's B2 corporate family rating with a stable outlook. The agency expects EBITDA to rise to nearly $280 million (around ₹2,496 crore) in FY26, supported by acquisitions, premium hospitality expansion, and efficiency measures.
OYO IPO Could Be Among Largest New-Age Listings
The proposed issue is expected to rank among the biggest public offerings by a new-age technology company in India.
The development comes at a time when several consumer internet and technology firms are reassessing listing timelines due to fluctuations in equity markets. Despite the challenging environment, PRISM appears to be moving ahead with preparations while closely tracking investor sentiment and market conditions.
Axis Capital, Goldman Sachs, Citibank, SBI Capital Markets, JM Financial, ICICI Securities, InCred Capital and Intensive Fiscal Services have been appointed as the book-running lead managers for the IPO.
With regulatory approval now in place, investors will closely watch the company's next steps as it prepares for what could become one of the most significant technology-sector IPOs in the Indian market.
Recently, several other companies, along with Zepto, received SEBI approval for their proposed IPOs. You can read the detailed report here.