OYO IPO Latest Update: Prism Files Confidential DRHP, Valuation, Timeline & Key Investor Insights

Prism, the parent company of budget-hotel chain OYO, is going for the third attempt at a public listing. Let us first see some of the key information related to OYO:

• Founded in 2012 by Ritesh Agarwal
• Prism has expanded into a global hospitality tech conglomerate - with over 22,700 hotels and 1.2 lakh home listings across 35+ countries
• It operates multiple brands:
  • Hotels: OYO, Townhouse, Motel 6, Sunday, Palette, and others
  • Vacation Homes: Belvilla, DanCenter
  • Workspaces: Innov8, Weddingz

In recent years, the company has pivoted toward higher-end offerings (like launching 30+ “Sunday Hotels” in India, UAE, Saudi Arabia, SE Asia), and it rebranded globally as PRISM in 2025 to reflect this multi-brand, tech-driven strategy.

PRISM Financial Performance & Profit Turnaround

Importantly, Prism has turned its finances around. Let us see some of the key financial information:

• After years of losses, Prism reported its first full-year profit in FY2024 (PAT ₹229 crore)
• Growth continued in FY2025 as revenue reached ₹6,463 cr (+20% YoY) and PAT jumped 172% to ₹623 cr
• Prism’s Gross Booking Value (the total value of bookings) also surged (+54% to ₹16,436 cr in FY25)

Analysts and ratings agencies took note of this momentum. Moody’s projects FY26 EBITDA to exceed $280 million (about ₹2,496 cr).

In short, Prism/OYO is now profitable (12 straight profitable quarters) and growing, after a long “burn” phase.

On the back of this recovery, Prism’s board recently approved a ₹6,650 crore IPO.

Please note that shareholders approved the IPO in an Extraordinary General Meeting (EGM) held on Dec 20, 2025. A bonus‐share issue was also approved at 1:19, but the IPO is all-new shares.

Book Running Lead Managers

According to reports, book-running lead managers ICICI Securities, Axis Capital, Goldman Sachs, Citibank and others have been appointed to handle the offering.

Timeline of OYO / Prism IPO Attempts

The following is the timeline of PRISM’s key events:

Latest Update: Prism Files Confidential DRHP With SEBI

On January 1, 2026, Prism filed its confidential draft red herring prospectus (DRHP) with SEBI for the ₹6,650 cr. This means Prism is formally seeking SEBI’s nod but keeping details hidden until launch. The filing will only contain final numbers closer to the IPO.

We have written a detailed article on OYO’s update in December 2025. Feel free to go through that article if you want to learn about it.

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Watch this short video on OYO IPO journey and understand the entire roller coaster journey.

Expected Highlights From PRISM’s DRHP

The following can be some of the important highlights in PRISM’s recent confidential DRHP with SEBI:

Robust Financials:

Prism’s DRHP will highlight its profit turnaround and growth. FY25 revenue (₹6,463 cr) and PAT (₹623 cr) are likely to be presented, along with recent quarterly figures.

Financial Growth:

Investors will note the 47% YoY revenue jump in Q1, driven by new hotel openings and higher occupancy. The DRHP should also detail Prism’s 12 consecutive EBITDA-positive quarters.

Valuation Guidance:

With a targeted market cap of $7–8B ( approximately ₹6,650 cr IPO for 25–30× EBITDA), Prism will justify its valuation by highlighting scale (100+ million customers globally), and improved unit economics.

Share Price:

The underwriting banks have indicated a ₹70/share benchmark. Investors should watch the final price band and subscription structure once announced.

Use of Proceeds:

A major focus will be on Prism’s debt. As noted in financial filings, Prism had over ₹7,000 cr debt by FY25-end. The DRHP should break down planned uses like pay down debt, invest in premium hotels, technology and overseas growth. Given Moody’s optimistic outlook, it’s likely Prism will argue that healthy cash flows (projected FY26 EBITDA around ₹2,500 cr) can reduce debt.

Growth and Assets:

Beyond numbers, investors will see Prism’s global footprint. The DRHP will describe its brands (OYO, Townhouse, Sunday, Motel 6 in the US, etc.) and recent acquisitions (like G6 Hospitality/Motel 6 in 2024).

Risks and Governance:

The DRHP will also list risk factors like market competition, regulatory changes, and the challenge of maintaining service quality across geographies. However, recent governance reforms (more transparent ESOP structures, leadership consolidation) are likely to reassure investors. SoftBank’s stake (around 40%) and others’ holdings (Founder <7%) will be disclosed, but the IPO being fresh-only means promoters aren’t cashing out immediately.

In other words, investors can look for the Prism IPO within the next 6 months (as per company guidance). Once the DRHP review is complete, a formal red herring and pricing will be announced.

Implications for OYO Investors

For potential IPO investors, Prism’s turnaround is a key selling point. A successful IPO could validate OYO’s new strategy and provide an exit/liquidity opportunity for early backers.

However, the high price (₹70+/share) means future growth must materialise. Current shareholders (like SoftBank) will dilute slightly with the fresh issue, but the IPO proceeds should strengthen the company’s balance sheet.

The DRHP is likely to stress how Prism aims to leverage improved profitability for global expansion.

Conclusion

Prism’s resumed IPO drive comes after demonstrating consistent profits and growth. With shareholder approval of a ₹6,650 cr IPO and a confidential DRHP filed, investors should expect a major mid-2026 listing. The DRHP will detail Prism’s financial turnaround, extensive hotel portfolio (including new premium brands), and use of proceeds (notably debt reduction). Investors can look forward to a well-capitalised OYO/Prism, aiming to sustain its booking growth, with SEBI clearance and market conditions determining the exact IPO timing.

Frequently Asked Questions

What is the valuation of OYO in 2025?

Based on media reports and IPO approvals, OYO parent Prism is targeting a valuation of around $7 - 8 billion (₹58,000–66,000 crore) for its upcoming IPO, implying an issue price of roughly ₹70 per share.

Why did Prism choose the confidential DRHP route for its IPO?

The confidential filing allows Prism to test investor appetite and receive SEBI feedback privately before making financial details public, reducing market pressure and giving flexibility on timing and valuation.

Is this Prism’s first IPO attempt?

No. This is Prism’s third IPO attempt. The company earlier filed IPO papers in 2021 and again in 2023, but withdrew due to market volatility and unfavourable conditions.

Is OYO profitable now?

Yes. Prism reported its first full-year profit in FY24 and further improved performance in FY25, with profit after tax rising sharply and revenue crossing ₹6,400 crore, marking a major turnaround.

When is the OYO (Prism) IPO expected to launch?

If SEBI approvals and market conditions remain favourable, the IPO is expected within the next 6 months, potentially in H1 2026.

Disclaimer

This blog has been written solely for informational and educational purposes and is based on information extracted from various publicly available sources. Since the DRHP filed by OYO’s parent Prism is confidential, certain details discussed are based on expectations, media reports, and market analysis and may not be 100% factually accurate or final.

The securities mentioned are only examples and do not constitute any recommendation or investment advice. This content is not intended to influence any individual or entity to make investment decisions. Readers are advised to conduct their own independent research, verify information from official filings and disclosures, and consult qualified financial advisors before making any investment decisions.
Investments in the securities market are subject to market risks. Please read all related documents carefully before investing.
 

Author: Diwakar Singh

Diwakar Kumar Singh is a finance writer and BFSI specialist with 7+ years of experience in financial content and research. He has authored hundreds of finance articles, published multiple books internationally, and contributed to research publications. A Gold Medalist MBA from IMT, he brings a strong analytical understanding combined with clear, reader-focused communication. His work focuses on simplifying complex financial topics, including IPO analysis, unlisted shares, financial ratios, and company evaluations, providing well-researched and evidence-based insights to help readers make informed financial decisions.