PRISM, the parent company of hospitality chain OYO, has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for a ₹6,650 crore initial public offering (IPO), the company said.
The issue will comprise entirely of a fresh issue of shares, meaning existing investors will not be selling any portion of their holdings through an offer for sale.
The Ritesh Agarwal-led company may also carry out a pre-IPO placement of up to ₹1,330 crore, according to the filing. PRISM is reportedly targeting a valuation in the range of $7 billion to $8 billion for the public issue.
PRISM received SEBI's approval for the IPO earlier this month, after initially filing its draft papers through the confidential route in December last year.
Funds Earmarked Primarily for Debt Repayment
Of the total IPO proceeds, ₹4,987 crore will go toward repaying or prepaying outstanding borrowings, the company said, while the remaining capital will be used for general corporate purposes. As of December 31, 2025, PRISM's total borrowings stood at ₹7,485 crore.
This marks the company's latest attempt at a public listing after a prolonged and uneven path. OYO first filed its DRHP in September 2021, then seeking to raise about $1.2 billion at a valuation of $11 billion to $12 billion, but postponed those plans citing market conditions. It pre-filed draft IPO papers again in 2023 without proceeding to a public issue.
Because the current offering consists entirely of fresh shares, existing investors — including SoftBank's SVF India Holdings, Microsoft, Airbnb, Global Ivy Ventures, Lightspeed, Greenoaks Capital, and Peak XV — will not be paring their stakes through this listing.
Shareholding and Background
Founded in 2012, PRISM has raised close to $3.7 billion in funding to date. The company, formerly known as Oravel Stays, rebranded to PRISM last year ahead of the IPO to reflect its global expansion plans.
SVF India Holdings remains the largest shareholder with a 40.04% stake. Founder and chairman Ritesh Agarwal's investment vehicle, R A Hospitality Holdings, holds 20.12%, while Agarwal holds an additional 6.59% directly.
Profit Nearly Triples in Nine Months
On the financial side, PRISM reported a profit after tax of ₹748 crore in the first nine months of FY26, nearly three times the ₹245 crore profit recorded for the full FY25. Operating revenue for the nine-month period stood at ₹6,941 crore, up from ₹6,253 crore in all of FY25. Agarwal had said in December that the company expected to close FY26 with a profit of ₹1,100 crore.
Including other income, total income for the period came to ₹7,166.3 crore, against expenses of ₹6,936.6 crore — higher than the ₹6,659.5 crore reported for full FY25. Commission and brokerage expenses came to ₹808 crore, while advertising spend more than doubled to ₹342 crore from ₹170 crore in FY25. Employee expenses stood at ₹752 crore, and finance costs were ₹1,089.3 crore for the nine-month period.
EBITDA for the period stood at ₹2,127 crore, compared with ₹953 crore for all of FY25. Excluding exceptional items, share-based payment expense, and other income, EBITDA came to ₹1,968 crore — 80% higher than the FY25 figure of ₹1,095 crore.
US Business Now Outpacing India
PRISM has been expanding aggressively outside India, particularly in the US and Europe. As of December 31, 2025, its network spanned 24,303 hotels, 125,000 homes, and 145,000 listings overall, including 14,937 storefronts in India and 269,000 listings in Europe.
In the US, gross booking value (GBV) reached ₹12,022 crore in the nine-month period, up 155% from ₹4,712 crore for all of FY25, driven largely by the company's acquisition of G6 Hospitality, which runs the Motel 6 and Studio 6 brands across the US and Canada. The US accounted for 52.4% of PRISM's global GBV during the period.
India's company-serviced hotels recorded a GBV of ₹1,346.4 crore, up 65% from ₹818.2 crore in FY25, contributing 49.3% of the country's total GBV of ₹2,731.7 crore. Overall, India contributed 16.2% of PRISM's total operating revenue for the period, with operations there generating ₹1,126.7 crore against ₹5,814.3 crore from overseas markets.
The company said 67.6% of stays during the nine-month period came through direct-to-consumer channels, including its apps, websites, corporate accounts, travel agents, call centres, and walk-ins.
