PRISM, the parent company of OYO, has filed its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the Securities and Exchange Board of India (SEBI) for an initial public offering comprising a fresh issue of equity shares worth up to INR 6,650 crore. The proposed issue does not include an offer for sale by existing shareholders. The company may also undertake a pre-IPO placement of up to INR 1,330 crore before filing the Red Herring Prospectus, with any funds raised reducing the size of the fresh issue.
According to the filing, PRISM plans to utilise approximately INR 4,987.5 crore from the net proceeds to repay or prepay borrowings, while the remaining funds will be allocated towards general corporate purposes. The shares are proposed to be listed on the NSE and BSE.
The company stated that existing investors, including SoftBank’s SVF India Holdings, founder Ritesh Agarwal and RA Hospitality Holdings, Microsoft, Airbnb, Khazanah, A1 Holdings, Star Virtue Investment, Global Ivy Ventures, Lightspeed, Greenoaks Capital and Peak XV, are not divesting their holdings through the proposed IPO.
For the nine months ended December 31, 2025, PRISM reported revenue from operations of INR 6,941 crore, exceeding its full-year FY25 revenue of INR 6,259 crore. Profit after tax reached INR 748 crore, compared with INR 245 crore in FY25, while EBITDA increased to INR 2,127 crore from INR 953 crore in the previous financial year. EBITDA excluding exceptional items, share-based payment expenses and other income stood at INR 1,968 crore, representing an 80 per cent increase over the FY25 figure.
The company operates 43 brands across more than 35 countries. As of December 31, 2025, its portfolio included 24,303 hotels, 124,668 homes and 144,583 listings, including 14,937 storefronts in India. The company has also expanded its company-serviced hotel portfolio in India, increasing storefronts to 1,573 from 1,053 at the end of FY25. Gross Booking Value (GBV) from these properties reached INR 1,346.45 crore during the first nine months of FY26.
Internationally, PRISM’s US operations have expanded following the acquisition of G6 Hospitality, operator of the Motel 6 and Studio 6 brands. The US business generated GBV of INR 12,022.51 crore during 9MFY26, accounting for more than half of the company’s global GBV. In Europe, the company expanded its homes and listings portfolio to 269,251 properties, while noting that it still holds less than one per cent of the fragmented European homes market.
The filing also highlighted the company’s direct customer ecosystem, with 67.6 per cent of stays generated through direct channels and repeat demand accounting for 61.8 per cent during 9MFY26. Its loyalty programmes, OYO Wizard and My6, together had 26.4 million members as of December 31, 2025.
Separately, S&P Global Ratings revised PRISM’s outlook to Positive from Stable while affirming its ‘B’ issuer credit rating, citing stronger profitability, cash generation and the expected impact of the proposed IPO on its balance sheet. The filing also follows a recent ruling by the Delhi bench of the Income Tax Appellate Tribunal, which set aside an INR 3,885 crore tax demand related to share premium, removing a significant tax-related overhang ahead of the company’s proposed public listing.
