India’s startup ecosystem has witnessed countless comeback stories over the years. Few, however, have been as closely watched as OYO’s journey from one of the country’s most celebrated startup success stories to a company navigating market turbulence, rebuilding investor confidence, and now preparing for another shot at the public markets.
In what could mark one of the most significant startup listings in recent years, PRISM, the parent company of hospitality technology firm OYO, has secured 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 approval represents a crucial milestone in the company’s renewed efforts to enter the stock market after previous listing plans were put on hold amid challenging market conditions.
For India’s startup ecosystem, the development is more than just another IPO approval. It signals the continued maturity of venture-backed companies that are now transitioning from high-growth startup ventures into businesses seeking public market participation.
A Fresh Push Towards the Public Markets
PRISM’s latest IPO journey formally began in December 2025, when the company confidentially filed its Draft Red Herring Prospectus (DRHP) with SEBI.
The confidential filing route has increasingly become a preferred option for companies preparing for public listings, allowing them greater flexibility while navigating regulatory processes and market dynamics before making detailed disclosures public.
The filing came shortly after shareholders approved a major fundraising proposal during an Extraordinary General Meeting held on December 20, 2025.
At the meeting, investors cleared a plan enabling the company to raise up to Rs 6,650 crore through a fresh issue of equity shares, laying the groundwork for what could become one of India’s most closely tracked startup IPOs.
With SEBI’s approval now in hand, PRISM is expected to move to the next phase of the process by filing an Updated Draft Red Herring Prospectus (UDRHP-1).
The updated document will be made available for public comments for a period of 21 days before the company advances further toward its listing.
According to sources, PRISM is currently assessing market conditions and evaluating the most suitable timeline before taking the final steps toward launching the issue.
A Potential Valuation of Up to $8 Billion
One of the most closely watched aspects of the upcoming public offering is the company’s potential valuation.
Sources indicate that the proposed IPO could value PRISM between $7 billion and $8 billion, reflecting investor expectations around the company’s growth prospects and expanding global operations.
Such a valuation would place the company among the most valuable startup-origin businesses preparing to access India’s public markets.
The listing will also serve as an important test of investor appetite for technology-enabled hospitality businesses, a sector that has undergone significant transformation in the post-pandemic era.
The Financial Powerhouse Behind the IPO
To manage the offering, PRISM has assembled an extensive roster of investment banking partners.
The company has appointed Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, SBI Capital Markets, JM Financial, InCred Capital and Intensive Fiscal Services as book-running lead managers for the issue.
The participation of multiple leading domestic and international investment banks underscores the scale and significance of the proposed offering.
A Different Company Than It Was During Its First IPO Attempt
The latest IPO push comes against a backdrop of substantial operational evolution.
When PRISM first explored a public listing in 2021, the company was navigating a very different market environment. Investor sentiment toward technology startups was markedly different, and several companies faced challenges in balancing growth ambitions with profitability expectations.
Eventually, the company decided to defer its public market plans.
Fast forward to 2026, and PRISM enters the IPO process with a considerably broader business portfolio and a more diversified global presence.
Over the past year, the company has accelerated its expansion across India, the United States, and Europe while sharpening its focus on higher-value hospitality offerings.
A key area of emphasis has been self-operated hotels and premium hospitality brands, including Sunday Hotels and Pallette Hotels, as the company seeks to strengthen its presence in segments that offer greater control over customer experience and operational performance.
At the same time, PRISM has ventured deeper into new categories and travel segments.
The company entered India’s vacation rental market through DanCenter, expanding beyond traditional hotel accommodation and tapping into evolving consumer travel preferences.
It has also increased its presence in religious tourism destinations, a segment that continues to witness growing demand across the country.
Strengthening Governance Ahead of Listing
As companies prepare for public market scrutiny, corporate governance often comes into sharper focus.
In line with this trend, PRISM recently appointed former SEBI Chairman Ajay Tyagi as an Independent Director.
The appointment is expected to strengthen the company’s governance framework as it moves closer to becoming a publicly listed entity and prepares to meet the expectations of a wider investor base.
Ratings Agency Sees Improving Financial Performance
The company’s IPO ambitions are also supported by improving business fundamentals.
In November 2025, Moody’s Ratings reaffirmed PRISM’s B2 Corporate Family Rating while maintaining a stable outlook.
At the time, the ratings agency projected the company’s EBITDA to reach approximately $280 million, or around Rs 2,496 crore, during FY26.
According to Moody’s, the projected growth would be driven by contributions from the company’s G6 Hospitality acquisition, expansion of premium storefront offerings, and operational efficiencies across the business.
The reaffirmation provided an important vote of confidence at a time when investors have become increasingly focused on profitability, cash flows, and sustainable growth rather than expansion at any cost.
What This Means for India’s Startup Ecosystem
PRISM’s progress toward a public listing carries significance beyond the company itself.
The proposed IPO will be closely monitored by startup founders, venture capital firms, public market investors, and policymakers alike as a barometer of sentiment toward large-scale startup-backed businesses.
Over the past few years, India’s startup ecosystem has matured considerably, producing companies that are increasingly preparing for public market participation rather than relying solely on private capital.
For many observers, PRISM’s IPO journey represents the next chapter in that evolution.
After postponing its first listing attempt, the company has spent years refining its business strategy, strengthening operations, expanding globally, and improving financial performance. With SEBI’s approval now secured, the company appears closer than ever to achieving its long-awaited stock market debut.
The road to listing is not yet complete, and market conditions will ultimately influence the timing of the issue. However, the regulatory clearance marks a major milestone in PRISM’s public market ambitions and potentially sets the stage for one of the most anticipated startup-linked IPOs in India in the coming months.
