Oyo's Parent Company Advances Towards IPO with Updated Draft Filing

Prism Hotels and Resorts, the parent company of Oyo, has taken a major step towards its IPO by filing an updated draft red herring prospectus with SEBI. The company plans to raise up to Rs 6,650 crore through a fresh issue of equity shares, with no existing shareholders selling their stakes. Additionally, a pre-IPO placement of Rs 1,330 crore may occur before the official filing. The funds will primarily be used to repay debts and for corporate purposes. With a significant increase in EBITDA and a vast global presence, Prism is poised for a successful market entry.

By Narendra Chaudhary Jun 30, 2026, 11:56 IST

Prism Hotels and Resorts Moves Closer to Stock Market Launch

Prism Hotels and Resorts, the parent entity of Oyo, has submitted its updated draft red herring prospectus (UDRHP) to the Securities and Exchange Board of India (SEBI), marking a significant step towards its anticipated stock market entry. The forthcoming initial public offering (IPO) includes a new equity share issue valued at up to Rs 6,650 crore, with no shares being sold by current stakeholders. Additionally, the company may pursue a pre-IPO placement of as much as Rs 1,330 crore prior to the submission of its red herring prospectus (RHP). The funds raised in the pre-IPO phase will be subtracted from the total of the new issue.

According to the UDRHP, Prism intends to allocate Rs 4,987.5 crore from the proceeds to settle or prepay debts, while the remaining capital will be directed towards general corporate needs. The IPO is entirely structured as a new issue, with prominent investors such as SoftBank's SVF India Holdings, Microsoft, Airbnb, Peak XV Partners, Lightspeed, RA Hospitality Holdings, and Global Ivy Ventures not participating in the sale of shares.

Recently, Prism obtained SEBI's approval for its planned IPO after confidentially filing its draft documents in December 2025, following the endorsement from shareholders to raise up to Rs 6,650 crore through a new issue. The company's EBITDA has more than doubled to Rs 2,127 crore from Rs 953 crore in the previous year, and as of December 31, 2025, it reported operating 243,303 hotels and 144,583 homes worldwide, including 14,937 company-managed storefronts in India.