OYO’s parent company, PRISM, has taken another major step towards its stock market debut by filing an Updated Draft Red Herring Prospectus (UDRHP-I) with the Securities and Exchange Board of India for its proposed ₹6,650 crore IPO. The updated filing comes after the company received SEBI’s approval for its confidential IPO application, which was first submitted in December 2025. With this latest move, the hospitality technology company has entered the final regulatory stage before its IPO launch.
The proposed IPO will be entirely a fresh issue of equity shares worth up to ₹6,650 crore, with no Offer for Sale (OFS). This means all the money raised will go directly to the company, while existing shareholders will continue to hold their stakes. Investors like SoftBank, Microsoft, Airbnb, Peak XV Partners, Lightspeed, Greenoaks Capital, Khazanah Nasional, and founder Ritesh Agarwal are not selling any shares through the IPO.
PRISM has also kept the option of raising up to ₹1,330 crore through a pre-IPO placement before the public issue. If that happens, the size of the fresh issue will be reduced by the amount raised privately. Estimates suggest that the company is targeting a valuation of around $7-8 billion, lower than the around $12 billion valuation it had aimed for during its earlier IPO attempt in 2021.
The company plans to use most of the IPO proceeds to reduce its debt. Around ₹4,987.5 crore, almost 75% of the total issue size, has been allocated for repaying or prepaying existing borrowings, while the remaining funds will be used for general corporate purposes. Meanwhile, the company’s financial performance has improved significantly over the past year. During the first nine months of FY26 (April-December 2025), PRISM reported revenue from operations of ₹6,941 crore, already higher than its full-year FY25 revenue of ₹6,259 crore. Net profit for the nine-month period stood at ₹748 crore, compared with ₹245 crore in the entire previous financial year. The company also reported EBITDA of ₹2,127 crore, showing stronger operating performance.
Notably, the latest filing marks OYO’s fourth attempt to enter the public markets after several delays over the past five years. The company first filed its DRHP with SEBI in October 2021, proposing to raise ₹8,430 crore at a valuation of around $12 billion, but withdrew the plan as global technology stocks corrected and investor sentiment weakened. It made a second attempt through SEBI’s confidential filing route in March 2023, but withdrew those papers in May 2024 as it worked on refinancing its debt, which would have materially changed its financial statements. OYO then planned another IPO for FY26 at a reduced valuation of around $7 billion, but reports in May 2025 said the listing was postponed again after SoftBank, its largest shareholder with around a 40.04% stake, pushed for a delay until the company delivered stronger financial performance and market conditions improved.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
