New Delhi | Business Press
PRISM, the parent company of hospitality platform OYO, has filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for its proposed ₹6,650 crore Initial Public Offering (IPO). While the filing marks another major step toward listing, the company’s unlisted shares have shown limited movement in the pre-IPO market despite a significant turnaround in its financial performance.
The proposed IPO will consist entirely of a fresh issue of shares, with no Offer for Sale (OFS) from existing shareholders. The company may also undertake a pre-IPO placement of up to ₹1,330 crore, which could reduce the size of the fresh issue before the final Red Herring Prospectus (RHP) is filed.
Unlisted Market Remains Cautious
According to market dealers, PRISM’s unlisted shares are currently trading in the ₹22–24 range, down from approximately ₹28–30 earlier this year. Despite stronger earnings and the IPO announcement, investor sentiment in the unlisted market has remained subdued.
Market participants attribute the muted response to abundant supply in the pre-IPO market and investors waiting for sustained financial performance before assigning higher valuations.
Strong Financial Turnaround
PRISM has reported a sharp improvement in its financials. During the first nine months of FY26, the company generated ₹6,941 crore in revenue, already exceeding its FY25 full-year revenue of ₹6,259 crore.
The company also reported a profit after tax (PAT) of ₹748.34 crore for the nine-month period ended December 31, 2025. This compares with ₹244.82 crore in FY25, ₹229.58 crore in FY24, and a loss of ₹1,286.52 crore in FY23, highlighting a significant turnaround in profitability.
Focus on Premium Hospitality
PRISM has gradually shifted its strategy from being a budget hotel aggregator to becoming a broader hospitality platform focused on higher-margin offerings.
Its portfolio now spans 43 hospitality brands across more than 35 countries, covering hotels, holiday homes, serviced apartments, and vacation rentals. The company has also expanded its presence in key international markets, including the United States, Europe, and the Middle East.
Industry observers believe the strategic shift towards premium hospitality and stronger operational control could improve long-term profitability, although execution will remain critical in an increasingly competitive global market.
IPO Proceeds to Reduce Debt
According to the filing, ₹4,987.5 crore from the IPO proceeds will primarily be used to repay or prepay existing borrowings, while the remaining funds will support general corporate purposes.
Notably, existing shareholders—including founder Ritesh Agarwal and investors such as SoftBank, Microsoft, Airbnb, Peak XV Partners, Lightspeed, and Khazanah Nasional—are not selling shares as part of the proposed issue.
Expanding Global Footprint
As of December 31, 2025, PRISM operated:
- 24,303 hotels
- 124,668 homes
- 144,583 hospitality listings
- Presence across 35+ countries
- More than 119 million unique customers served since inception
The company’s U.S. business has gained scale following its acquisition of G6 Hospitality, operator of the Motel 6 and Studio 6 brands. Meanwhile, its European vacation rental portfolio has continued to expand under brands such as Belvilla, DanCenter, and CheckMyGuest.
Improved Credit Outlook
Adding further credibility to its financial turnaround, S&P Global Ratings recently revised PRISM’s outlook from Stable to Positive, while affirming its ‘B’ issuer credit rating. The agency cited improving profitability, stronger cash flows, and a healthier balance sheet as key reasons for the upgrade.
Market Watching Consistency
While PRISM’s improved profitability and global expansion have strengthened its IPO narrative, investors remain focused on whether the company can consistently sustain earnings after listing.
With India’s primary market continuing to attract interest in profitable technology-led businesses, PRISM’s upcoming IPO is expected to be one of the closely watched public offerings in the hospitality sector during 2026.
Disclaimer: This article is intended solely for informational purposes and should not be construed as investment advice. Investors should conduct their own research or consult a qualified financial advisor before making
investment decisions.
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