OYO Parent PRISM Secures SEBI Approval for IPO Valued at $7-8 Billion, ETTravelWorld

PRISM, the global hospitality technology company and parent of OYO, has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), according to sources familiar with the development.

The company had submitted its Confidential Draft Red Herring Prospectus (DRHP) to the market regulator in December 2025 as part of its listing process. The filing followed shareholder approval secured during an Extraordinary General Meeting held on December 20, 2025, authorising the company to raise up to INR 6,650 crore through a fresh issue of equity shares.

According to sources, the proposed public offering could value the company at approximately USD 7-8 billion.

As part of the next phase of the process, PRISM is expected to file an Updated Draft Red Herring Prospectus (UDRHP-1), which will be made available for public comments for 21 days. Sources indicate that the company is targeting an early July filing while continuing to assess market conditions and broader listing timelines.

The company has appointed Axis Capital, Citibank, Goldman Sachs, ICICI Securities, SBI Capital Markets, JM Financial, InCred Capital and Intensive Fiscal Services as book-running lead managers for the proposed issue.

The regulatory approval comes as PRISM continues to expand its hospitality portfolio across key markets including India, the United States and Europe. The company has increased its focus on self-operated hotels and premium hospitality offerings, including Sunday Hotels and Palette Hotels.

In recent months, the company has also entered India’s vacation rental segment through the launch of its European holiday homes brand, DanCenter, in Goa. Additionally, it has expanded its presence in religious destinations to tap into growing demand for spiritual tourism and pilgrimage travel.

Strengthening its corporate governance framework ahead of the listing, PRISM recently appointed former SEBI Chairman Ajay Tyagi as an Independent Director on its board. Industry observers view the appointment as a strategic move as the company prepares for its public market debut.

Separately, global ratings agency Moody’s recently reaffirmed PRISM’s B2 corporate family rating with a stable outlook. Moody’s expects the company’s EBITDA to more than double to approximately USD 280 million (around INR 2,496 crore) in FY26, supported by contributions from the G6 Hospitality acquisition, expansion of premium hotel offerings and ongoing cost optimisation measures.

The proposed IPO is expected to be closely watched by the travel and hospitality sector as investors assess the company’s growth trajectory, international expansion plans and evolving business model.