Prism, the parent company of hospitality platform Oyo, is preparing for a potential initial public offering (IPO) in November as it begins gauging investor demand for its proposed share sale. The company is holding discussions with investors, although the final launch date will depend on market conditions, regulatory approvals and the response from prospective investors, according to people familiar with the matter cited by Moneycontrol.
“The book is still being built. Discussions are on with investors. The deal can be expected to be launched sometime next month, depending on investor demand,” one source said.
Another source clarified that the company has not made a final decision on the IPO timeline. The book-running lead managers (BRLMs) will recommend the launch date after considering regulatory clearances, market conditions and other relevant factors.
Credits: Outlook Money
IPO to Raise Rs 6,650 Crore Through Fresh Issue
According to Prism’s updated draft red herring prospectus (DRHP), dated June 29, 2026, the company proposes to raise up to Rs 6,650 crore entirely through a fresh issue of equity shares. The offering does not include an offer for sale (OFS), meaning existing shareholders are not proposing to sell their holdings as part of the issue.
Prism intends to allocate Rs 4,987.5 crore from the net proceeds towards an investment in its subsidiary, Oravel Stays Singapore Pte Ltd, to repay or prepay certain borrowings. The remaining proceeds will be directed towards general corporate purposes.
The planned debt reduction could help ease the company’s financing burden. Prism’s consolidated finance costs reached Rs 1,089.3 crore during the nine months ended December 2025, compared with Rs 959.2 crore for the entire financial year ended March 2025.
Oyo Parent Expands Beyond Budget Hotels
Founded in India in 2012, the group has grown from a budget-hotel operator into an international hospitality platform spanning hotels, vacation homes and subscription-based property listings. Its services include branding, distribution, technology solutions, pricing tools, revenue management and customer support for property owners and operators.
Its hotel portfolio includes Oyo, Sunday, Townhouse, Townhouse Oak, Palette, Motel 6 and Studio 6. The vacation-rental business operates brands such as Belvilla, DanCenter and CheckMyGuest, while its European listings business enables property owners to advertise their properties for a fixed subscription fee.
As of December 31, 2025, the platform had 293,554 storefronts across more than 35 countries. These included 24,303 hotel storefronts, 124,668 home storefronts and 144,583 subscription listings.
International acquisitions have played a key role in this expansion. In FY25, the group acquired the G6 business, which operates Motel 6 and Studio 6, for an upfront cash consideration of approximately $503.6 million. It also acquired France-based CheckMyGuest and subsequently purchased MadeComfy, a vacation-home management business operating in Australia and New Zealand.
Credits: Moneycontrol
Revenue Growth Accompanied by Deferred Tax Benefits
Prism reported consolidated revenue from operations of Rs 6,252.8 crore in FY25, up approximately 16% from Rs 5,388.8 crore in FY24. Net profit rose to Rs 244.8 crore from Rs 229.6 crore over the same period.
However, the company’s reported profitability requires closer examination. A deferred tax credit of Rs 767.6 crore helped offset a pre-tax loss of Rs 489.3 crore in FY25, substantially influencing its bottom line.
For the nine months ended December 2025, Prism reported revenue of Rs 6,941 crore and net profit of Rs 748.3 crore. The company recorded a pre-tax profit of Rs 245.2 crore during the period, while a deferred tax credit of Rs 559.3 crore further boosted its reported earnings.
With the proposed IPO expected to provide funds for debt repayment and corporate requirements, investor interest will likely depend on the company’s growth prospects, financial performance and ability to demonstrate sustainable profitability. The eventual launch, however, remains subject to market conditions and the necessary regulatory approvals.
The IPO will also test investor confidence in hospitality technology platforms as Prism balances international expansion, acquisition-led growth and efforts to strengthen its financial position.
