With profitability improving, revenues surging and debt reduction at the centre of its strategy, OYO parent Prism Hotels & Resorts has taken another decisive step towards its much-awaited stock market debut. The company has now filed updated IPO papers with SEBI for a ₹6,650 crore public issue, signalling growing confidence in its financial turnaround and global business expansion.
India’s IPO market continues to witness heightened activity, and one of the most closely watched offerings is inching closer to reality. Hospitality and travel technology major Prism Hotels & Resorts, the parent company of OYO, has filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI), moving a step closer to launching its much-anticipated initial public offering (IPO).
The proposed public issue is worth ₹6,650 crore and is structured entirely as a fresh issue of equity shares, with no existing shareholders selling their stakes. The move underscores the company’s focus on raising fresh capital to strengthen its balance sheet rather than providing an exit to current investors.
The updated filing comes just weeks after Prism received SEBI’s approval for the IPO. The company had first confidentially submitted its draft papers in December 2025 after receiving shareholder approval to raise up to ₹6,650 crore through a fresh equity issue.
A Pure Fresh Issue With No Shareholder Exit
Unlike many large IPOs where early investors partially exit through an Offer for Sale (OFS), Prism’s public issue is designed entirely as a primary capital raise.
This means all the money raised from the IPO will flow directly into the company, while existing investors—including founder Ritesh Agarwal, SoftBank’s SVF India Holdings, Microsoft, Airbnb, Peak XV Partners, Lightspeed, Khazanah, Greenoaks Capital, InCred, RA Hospitality Holdings, Global Ivy Ventures, A1 Holdings, and Star Virtue Investment—will continue to retain their shareholding after the listing.
Prism has also kept the option open to raise up to ₹1,330 crore through a pre-IPO placement before filing its final Red Herring Prospectus (RHP). If such a placement is completed, the amount raised will be deducted from the size of the fresh issue.
Debt Reduction Tops the Priority List
One of the biggest objectives behind the IPO is to significantly reduce the company’s debt burden.
According to the updated filing, ₹4,987.5 crore from the net proceeds will be used towards the repayment or prepayment of borrowings. The remaining funds will be allocated for general corporate purposes.
Reducing debt is expected to strengthen Prism’s financial position while providing greater flexibility for future growth and expansion.
Financial Performance Shows Strong Momentum
The updated IPO filing also highlights Prism’s improving financial health.
During the first nine months of FY26, the company generated ₹6,941 crore in revenue from operations, already surpassing its entire FY25 revenue of ₹6,259 crore.
Profitability has also improved significantly.
The company reported a profit after tax (PAT) of ₹748 crore during the first nine months of FY26, compared with ₹245 crore for the whole of FY25.
Its EBITDA nearly doubled to ₹2,127 crore, up from ₹953 crore a year earlier.
Meanwhile, EBITDA excluding exceptional items, share-based payment expenses and other income stood at ₹1,968 crore, reflecting continued operational improvement.
The strong financial performance comes as OYO has focused on improving profitability while expanding selectively across global markets.
A Global Hospitality Platform Across 35 Countries
Prism has evolved far beyond being an India-focused hotel aggregator.
According to the filing, the company now operates 43 brands across more than 35 countries, giving it one of the largest hospitality technology networks globally.
As of December 31, 2025, Prism’s network included:
- 24,303 hotels
- 124,668 homes
- 144,583 listings
- 14,937 storefronts in India
Since its launch in 2012, the platform has served over 119.36 million unique customers, highlighting the scale it has achieved over the past decade.
Company-Serviced Hotels Continue to Expand in India
One of the notable trends highlighted in the filing is the rapid expansion of Prism’s company-serviced hotel business in India.
The number of company-serviced hotel storefronts increased from 1,053 in March 2025 to 1,573 by December 2025, reflecting the company’s growing focus on directly managed hospitality operations.
These hotels generated a Gross Booking Value (GBV) of ₹1,346.45 crore during the first nine months of FY26, representing around 65% growth over the ₹818.23 crore recorded in FY25.
The segment contributed nearly 49.29% of Prism’s India GBV, making it an increasingly important driver of domestic business.
US Business Emerges as a Major Growth Engine
The company’s international business has also expanded rapidly, particularly in North America.
Following the acquisition of G6 Hospitality, which owns the Motel 6 and Studio 6 brands across the United States and Canada, Prism has significantly strengthened its presence in the region.
The US business recorded a Gross Booking Value of ₹12,022.51 crore during the first nine months of FY26, a sharp 155% increase from ₹4,712.83 crore in FY25.
The North American business now contributes 52.39% of Prism’s global GBV, making it the company’s largest geographical market by booking value.
The acquisition has become a key pillar of Prism’s international growth strategy and has substantially expanded its hospitality footprint beyond Asia.
European Business Continues to Scale
Prism has also continued expanding its vacation rental business across Europe.
Its homes and listings portfolio grew to 269,251 properties by the end of December 2025, compared with 208,901 properties at the end of March 2025.
The European portfolio includes brands such as Belvilla, DanCenter, and CheckMyGuest.
Despite the growth, the company noted that its European business still represents less than 1% of the overall regional homes market, indicating significant room for future expansion.
A Major IPO Backed by Improving Fundamentals
Prism’s updated IPO filing comes at a time when the company is demonstrating stronger financial performance, improving profitability and expanding across multiple international markets.
Unlike many public offerings that primarily facilitate investor exits, Prism’s IPO is structured to bring fresh capital into the business, with debt reduction emerging as its biggest priority.
The company has also strengthened its operating performance through rapid expansion of its company-serviced hotel business in India, continued growth in Europe and a significant boost from its North American operations following the G6 Hospitality acquisition.
As the company prepares for its market debut, investors will closely watch how it leverages the fresh capital to improve its balance sheet while sustaining growth across its global hospitality network. The proposed ₹6,650 crore IPO is expected to be one of the significant public market offerings in India’s hospitality and travel technology sector, reflecting both the company’s transformation and its ambitions for the next phase of growth.
