Oyo’s third attempt at a public listing has reached a decisive new stage. Global hospitality-tech firm PRISM, the parent of OYO, has filed its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the Securities and Exchange Board of India. The company had confidentially filed its draft red herring prospectus in December 2025. The proposed initial public offering comprises a fresh issue of shares worth up to ₹6,650 crore, with no offer for sale by existing shareholders.
Entire fresh issue, with ₹4,987.5 crore earmarked for debt repayment. Revenue and profit grew strongly, while no existing investors are exiting. The filing brings the company, now officially known as Prism, a step closer to one of India’s most anticipated new-age technology listings of the year.
“#MarketAlert | OYO parent PRISM files DRHP for a ₹6,650 crore IPO, structured entirely as a fresh issue, with a majority of the proceeds earmarked for debt repayment #OYO #IPO #StockMarket”~ET NOW
No Investor Exits: SoftBank, Microsoft, Airbnb All Staying Invested
What sets this IPO apart from most new-age technology listings in India is the complete absence of an offer-for-sale component. With the IPO structured entirely as a fresh issue, existing shareholders, 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 selling shares through the proposed public issue.
Unlike several recent technology IPOs, Prism’s public issue is structured entirely as a fresh issue, allowing all proceeds to flow into the company instead of providing exits to existing investors. This is a meaningful departure from the typical pattern of new-age IPOs in India, where early investors often use the listing as their primary liquidity event. The company may also consider a pre-IPO placement of up to ₹1,330 crore before filing the Red Herring Prospectus with the Registrar of Companies.
“#OYO’s IPO journey is back on track! After multiple delays and a complete rethink of its strategy, OYO parent company Prism has reportedly secured SEBI approval for a ₹6,650 crore IPO, targeting a valuation of $7–8 billion. What changed? IPO size reduced by 40–60%.”~ᏰᏗᏝᏗ
Where The Money Goes: Debt Repayment Is The Priority
According to the updated draft prospectus, the company plans to utilise ₹4,987.5 crore from the IPO proceeds to repay or prepay outstanding borrowings, while the remaining funds will be used for general corporate purposes. That allocation nearly 75% of the entire fresh issue going toward debt reduction signals that strengthening the balance sheet, rather than funding aggressive new expansion, is the company’s primary objective heading into public markets.
The company, formerly known as Oravel Stays, changed its corporate name to Prism last September to better reflect its expanding global hospitality and co-working business. The rebrand was more than cosmetic — it established an umbrella structure where Prism oversees a portfolio spanning budget and mid-market hotels, premium and boutique stays, resorts, vacation rentals, and co-working spaces, with OYO continuing as the consumer-facing brand for budget and midscale travel.
“OYO’s 2025 rebrand to PRISM marked more than a name change – it was a strategic reset. Moving beyond its image as a budget hotel aggregator, PRISM positions the Ritesh Agarwal-led company as a portfolio-led, tech-first hospitality platform.”~Inc42
A Listing Three Attempts In The Making:
This IPO filing marks the end of a journey that has strained investor patience for years. The company initially intended to list in 2021, then withdrew, refiled, and withdrew again before receiving SEBI’s observation letter earlier this year. OYO’s parent company, PRISM, has filed a confidential DRHP with SEBI for a ₹6,650 crore IPO, aiming for a $7-8 billion value and a 2026 listing. This is the third time the company has filed, following previous withdrawals.
The shareholder approval process was completed well in advance. OYO’s parent company PRISM got shareholders’ nod to raise up to ₹6,650 crore via fresh equity issue for its long-awaited public listing at an EGM on December 20, with a 1:19 bonus issue also approved, with a record date of December 5. As OYO eyes a $7–8 billion IPO valuation, Prism could be the lens through which investors reassess the company’s next chapter.
With the updated DRHP now formally filed with SEBI, the path toward a public listing has never looked clearer for the company that built India’s largest budget hotel chain and is now betting that public markets will reward a cleaner, debt-light, diversified hospitality portfolio over its earlier identity as a fast-scaling aggregator
