OYO Parent PRISM Receives SEBI Approval for Proposed IPO

PRISM, the parent company of hospitality major OYO, has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), marking a significant step towards its public market debut.

The regulatory clearance comes months after the company confidentially filed its draft IPO papers in December 2025 through the pre-filed route. According to reports, the proposed public issue is expected to raise up to ₹6,650 crore and could value the company between $7 billion and $8 billion.

Following SEBI’s approval, PRISM is expected to file an Updated Draft Red Herring Prospectus (UDRHP) in the coming weeks as it moves ahead with the listing process.

Led by founder and CEO Ritesh Agarwal, PRISM has evolved into a global hospitality and travel technology platform with operations spanning hotels, vacation rentals, resorts, and coworking spaces. Its portfolio includes brands such as OYO, Motel 6, Studio 6, Sunday Hotels, Palette Hotels, DanCenter, and Innov8.

Ahead of the IPO, shareholders had approved a proposal to raise up to ₹6,650 crore through a fresh issue of equity shares during an Extraordinary General Meeting held in December 2025.

The company has also expanded its international footprint, particularly in the United States, following the acquisition of G6 Hospitality, the operator of Motel 6 and Studio 6, in a $525 million deal completed last year. PRISM has stated that the acquisition is expected to strengthen its presence in the US hospitality market and contribute significantly to future growth.

In addition to its global expansion strategy, the company has been strengthening its premium hospitality offerings through brands such as Sunday Hotels, Palette Hotels, and Townhouse, while also increasing its focus on religious tourism destinations across India.

For FY25, PRISM reported revenue of ₹6,252.8 crore, reflecting a 16% year-on-year increase, while net profit rose to ₹244.8 crore. The company has also reported multiple consecutive quarters of positive EBITDA as it continues to improve its financial performance ahead of the listing.

As part of its governance strengthening measures before the IPO, PRISM appointed former SEBI chairman Ajay Tyagi as an independent director. The company is backed by investors including SoftBank Group, Lightspeed Venture Partners, Peak XV Partners, and Microsoft.

According to market reports, PRISM is currently evaluating market conditions and broader listing timelines before proceeding with the next stage of its IPO process.