OYO parent PRISM wins Sebi nod for IPO, targets $7-8 billion valuation

MUMBAI: PRISM, the global hospitality technology company that operates OYO, has received approval from the Securities and Exchange Board of India (Sebi) for its proposed initial public offering (IPO), according to two people aware of the development.

The company had confidentially filed its draft red herring prospectus (DRHP) with the regulator in December 2025 as part of its listing plans. The filing followed shareholder approval at an extraordinary general meeting on 20 December, where investors cleared a proposal to raise up to ₹6,650 crore through a fresh issue of equity shares, the people said.

PRISM is targeting a valuation of about $7-8 billion for the proposed IPO, they added.

The company is expected to file an updated draft red herring prospectus (UDRHP-1), which will be made public and remain open for comments for 21 days. It is aiming to submit the document by early July, while monitoring broader market conditions and listing timelines, according to the people.

The regulatory approval marks a key milestone in founder Ritesh Agarwal-led OYO’s long-awaited public market journey. The company has shelved IPO plans multiple times amid volatile market conditions before reviving its listing process through the confidential filing route.

PRISM has sharpened its focus on profitability and expansion across key markets, including India, the US and Europe. Over the past year, it has increased its emphasis on self-operated hotels and premium brands such as Sunday Hotels and Palette Hotels.

It has also expanded into vacation rentals through its European brand DanCenter, which recently entered India with villa offerings in Goa. Domestically, it has stepped up its presence in religious destinations to tap rising demand for spiritual tourism.

PRISM recently appointed former Sebi chairman Ajay Tyagi as an independent director. Moody’s reaffirmed PRISM’s B2 corporate family rating with a stable outlook, saying it expects Ebitda to more than double to about $280 million ( ₹2,496 crore) in FY26, driven by the G6 Hospitality acquisition, expansion of premium hotel offerings and cost optimisation.

The IPO would be among the largest new-age technology listings in India. It comes as several major internet companies, including Flipkart and PhonePe, have deferred listing plans amid market volatility.

In May, Mint reported that yield-generating real estate and infrastructure investment trusts continue to attract investor demand, even as equity-market volatility has led several IPOs to be pulled or postponed. Despite this, companies such as SBI Funds Management and Manipal Health are moving ahead with listing plans. Others, including Zepto, the National Stock Exchange and Reliance Jio, are also evaluating timelines.