MUMBAI: Travel and hospitality firm PRISM (parent company of OYO) has received approval from the capital market regulator Securities and Exchange Board of India (SEBI) to raise Rs 6,500 crore through its proposed initial public offering (IPO), according to people aware of the development.
The company had filed its Confidential Draft Red Herring Prospectus (DRHP) with the market regulator at the end of Dec 2025 as part of its listing plans. The filing followed shareholders’ approval at an Extraordinary General Meeting (EGM) held on December 20, 2025, where the company received consent to raise up to Rs 6,650 crore through a fresh issue of equity shares.
The proposed public offering is expected to value the company at around $7–8 billion, according to people familiar with the matter.
The company has appointed Axis Capital, Citibank, Goldman Sachs, ICICI Securities, SBI Caps, JM Financials, InCred Capital and Intensive Fiscal Services as the book-running lead managers for the IPO.
The company will now file a public Updated Draft Red Herring Prospectus (UDRHP-1) which will be open for public comments for 21 days. As per sources, the company is planning to file this by early July. Sources said PRISM is currently evaluating market conditions and broader listing timelines while it prepares to file its UDRHP-1.
The development comes as PRISM strengthen its presence across its key markets, India, the US, and Europe and increases its focus on self-operated hotels and the growth of premium brands such as Sunday Hotels & Pallette Hotels.
PRISM recently appointed former SEBI Chairman Ajay Tyagi as an Independent Director on its board. Sources said that his experience in capital markets, corporate governance, and regulatory affairs is expected to strengthen PRISM’s board as the company moves toward its IPO.
Oyo had first filed for an IPO in 2021 to raise Rs 8,430 crore and filed offer documents with Sebi targeting a $12 billion valuation, followed by a subsequent filing incorporating updated financial and operational disclosures in 2023. However, the company later withdrew its IPO plans amid heightened global market volatility, which weighed on investor sentiment at the time.
Oyo was founded by Ritesh Agarwal in 2012, who is Prism's Group CEO. SoftBank remains one of its largest shareholders.