OYO's parent company, PRISM (formerly Oravel Stays), has publicly filed its Updated Draft Red Herring Prospectus (UDRHP-I) with SEBI for an IPO comprising a fresh issue of equity shares worth up to ₹6,650 crore, with no Offer for Sale (OFS) by existing shareholders.
Since the issue consists entirely of a fresh issue, all proceeds will be received by the company, strengthening PRISM's balance sheet and providing capital for future expansion rather than facilitating shareholder exits.
The company may also undertake a pre-IPO placement of up to ₹1,330 crore before filing the Red Herring Prospectus (RHP). If completed, the amount raised will be deducted from the size of the fresh issue.
The public filing follows PRISM's earlier confidential filing route and subsequent SEBI approval, marking another major milestone in OYO's long-awaited journey to the public markets.
PRISM has significantly strengthened its financial profile ahead of the IPO, reporting improved revenue growth and profitability, supported by strong operating performance, particularly in its international business.
The company has also benefited from a credit rating upgrade and favourable tax developments, further enhancing investor confidence ahead of the listing.
Market estimates suggest the IPO could value PRISM at around $7–8 billion, considerably lower than the valuation targeted during its earlier IPO attempt in 2021, reflecting a more balanced approach to public market pricing.
Investors will closely monitor the forthcoming RHP, particularly for details on the utilisation of proceeds, valuation, anchor investor participation, and the company's roadmap for sustaining profitable growth after listing.
