Prism, the parent company of hospitality firm Oyo, has filed preliminary papers with market regulator Sebi to raise Rs 6,650 crore through an initial public offering (IPO) using a confidential route. According to sources familiar with the development, the public offering is expected to value the company in the range of $7-8 billion.
At the extraordinary general meeting (EGM) held on December 20, shareholders approved the proposal to undertake the IPO, providing the company with the flexibility to access public markets at an appropriate time.
Shareholders also approved a bonus issue of equity shares in the ratio of 1 fully paid-up equity share for every 19 existing equity shares held, with December 5, 2025 fixed as the record date for determining eligible shareholders. The resolutions were approved by an overwhelming majority of shareholders, according to sources.
The move by Oyo comes amid improving sentiment in India's public markets, as technology companies increasingly prepare for listings with a renewed focus on profitability and capital efficiency.
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.
Moody's recently reaffirmed Prism's B2 corporate family rating with a stable outlook. The ratings agency expects the company's EBITDA to more than double to approximately $280 million (around Rs 2,496 crore) in FY26, supported by earnings from the acquisition of G6 Hospitality, expansion of premium storefronts, and continued cost optimisation. In the first quarter of FY26, the company reported a net profit of over Rs 200 crore and revenue of Rs 2,019 crore.
Sebi's confidential pre-filing mechanism allows issuers to engage with the regulator and refine disclosures before making offer documents public. The route provides companies with flexibility on timing, reduces market scrutiny during the regulatory review process, and enables issuers to test investor appetite before launching the IPO.