The hospitality unicorn is looking to raise ₹6,650 Cr from the IPO which will comprise solely of a fresh issue of shares and no OFS component
It may also undertake a pre-IPO placement of up to ₹1,330 Cr, which will be dedicated from the issue if raised
PRISM received SEBI’s approval for its IPO earlier this month, after filing the draft papers via the confidential route in December last year
Hospitality unicorn OYO’s parent PRISM
has filed its updated draft red herring prospectus (UDRHP) with SEBI for a ₹6,650 Cr IPO, which will comprise entirely of a fresh issue of shares.
The Ritesh Agarwal-led company may also undertake a pre-IPO placement of up to ₹1,330 Cr. PRISM is said to be eyeing a valuation of $7 Bn to $8 Bn for the public issue.
The company plans to use ₹4,987 Cr raised from the IPO to repay or prepay borrowings, while the remainder of the capital will be used for general corporate purposes. As of December 31, 2025, the company had total borrowings of ₹7,485 Cr.
PRISM received SEBI’s approval for its IPO earlier this month, after filing the draft papers via the confidential route in December last year.
Notably, OYO first filed its DRHP in September 2021, aiming to raise about $1.2 Bn at a valuation of $11 Bn to $12 Bn. However, it postponed its public listing plans due to market conditions. Later, it pre-filed draft IPO papers in 2023 but didn’t proceed with the public issue.
Since the IPO is composed entirely of a fresh issue of shares, OYO’s investors like SoftBank’s SVF India Holdings, Microsoft, Airbnb, Global Ivy Ventures, Lightspeed, Greenoaks Capital, Peak XV, among others, will not pare their stakes in the hospitality giant.
Founded in 2012, PRISM has raised nearly $3.7 Bn in funding to date. Notably, OYO parent Oravel Stays rebranded to PRISM ahead of the IPO last year to reflect its global aspirations.
SVF India Holdings is the biggest stakeholder in the company with a 40.04% stake, while founder and chairman Ritesh Agarwal’s investment holding company R A Hospitality Holdings has a 20.12% stake. Agarwal directly holds a 6.59% stake in the company.
On the financial front, PRISM reported a profit after tax of ₹748 Cr in the first nine months of FY26, almost 3X of the ₹245 Cr profit it reported in the full year FY25. Its operating revenue stood at ₹6,941 Cr in 9M FY26, up from ₹6,253 Cr in FY25. Agarwal said in December last year that the company was expected to close FY26 with a profit of ₹1,100 Cr.
Including other income, PRISM’s total income during 9M FY26 stood at ₹7,166.3 Cr. The company incurred expenses worth ₹6,936.6 Cr during the period, higher than ₹6,659.5 Cr reported for the full FY25.
The company spent ₹808 Cr during the period on commissions and brokerage, up from ₹7,387 in FY25. Its advertising expenses more than doubled during the period to ₹342 Cr from ₹170 Cr in FY25. Meanwhile, employee expenses during the period stood at ₹752 Cr while finance costs came out at ₹1,089.3 Cr in 9M FY26.
During the year, the company earned a bulk of its income from sale of accommodation services, which stood at ₹3,811 Cr, while commission earned from bookings and royalty income stood at ₹2,214.8 Cr. Other income sources include cancellation fee, value added services, sale of tours and wedding related services, rental income and F&B. The company earned ₹315.3 Cr from cleaning and damage fee during the period.
Notably, the company received a deferred tax credit of ₹559.3 Cr during the period under review and incurred a tax expense of ₹56.2 Cr.
PRISM’s EBITDA stood at ₹2,127 Cr during the period under review as against ₹953 Cr in FY25. EBITDA excluding exceptional items, share-based payment expense and other income stood at ₹1,968 Cr for 9M FY26, 80% higher than the full FY25 figure of ₹1,095 Cr.
PRISM has been steadily expanding its presence beyond India through expansion in geographies like the US and Europe. As of December 31, 2025, its network comprised 24,303 hotels, 1.25 Lakh homes and 1.45 Lakh listings, including 14,937 storefronts in India and 2.69 Lakh listings in Europe.
In the US, the company’s gross booking value (GBV) stood at ₹12,022 Cr during 9M FY26, up 155% from ₹4,712 Cr reported in the full FY25. The US contributed 52.4% of PRISM’s global GBV during the nine-month period, it said. The growth was driven by PRISM’s acquisition of G6 Hospitality, which operates the Motel 6 and Studio 6 brands in the US and Canada.
In comparison, its company-serviced hotels in India recorded a GBV of ₹1,346.4 Cr for 9M FY26, up 65% from the full FY25 figure of ₹818.2 Cr. Company-serviced hotels contributed 49.3% of PRISM’s India GBV, translating to a total India GBV of ₹2,731.7 Cr, more than a quarter of its total US GBV.
Overall, the company earned ₹1,126.7 Cr from its operations in India, compared to ₹5,814.3 from overseas. Consequently, India contributed to 16.2% of its overall operating revenue during the period.
As per the company, 67.6% of stays in 9M FY26 came from direct-to-consumer channels, including apps, websites, corporate channels, travel agent channels, call centres and walk-ins.
PRISM mentioned its legal spat with competitor Zostel in the UDRHP, noting that any adverse outcomes from the long-running dispute could have damaging effects on its business, including potential issuance or transfer of up to 7% of its shareholding. The issue pertains to a non-binding agreement filed by both parties for PRISM to acquire Zostel, which never materialised.
In July last year, the Supreme Court refused to entertain an appeal filed by Zostel against a Delhi High Court judgment that set aside a 2021 arbitral award against OYO’s parent.
Source: Inc42 - Startups
