OYO Parent PRISM IPO Gets Closer To SEBI Nod

After years of delays, valuation resets, and changing market sentiment, OYO could finally be near to public listing. OYO’s parent entity, PRISM, is likely to receive final SEBI approval soon while also reducing its IPO size to nearly Rs 6,500 crore in a more cautious and strategic move ahead of listing. In this blog, let’s discuss OYO Parent PRISM IPO in detail.

OYO Parent PRISM IPO Details

OYO is likely to receive final SEBI approval this week for its IPO. OYO used the confidential filing route, which allows companies to privately interact with SEBI before publicly revealing draft documents. The company is possibly targeting a public listing in the second half of FY26.

Merchant Bankers Appointed For OYO Parent PRISM IPO

To manage the IPO process, OYO has appointed several leading investment banks as book-running lead managers. The initial syndicate included ICICI Securities and Axis Capital. Goldman Sachs and Citibank. The company later expanded the banking syndicate as preparations for the IPO progressed.

OYO IPO Size And Valuation

According to NDTV Profits, OYO has reduced its proposed IPO size to nearly Rs 6,500 cr. from earlier estimates of around Rs 8,400 cr. through a fresh equity issue during an Extraordinary General Meeting (EGM), subject to market conditions and regulatory clearances. 

The expected valuation of OYO is reportedly around $7-8 billion. The IPO filing was made through SEBI’s confidential pre-filing route. This could be allowing the company to privately refine disclosures and assess investor interest before launching the issue publicly.

Why Did OYO Reduce Its IPO Size?

The reduction in IPO size appears to be a strategic move amid volatile market conditions and changing investor sentiment toward new-age technology companies. By lowering the issue size, OYO may be aiming to improve investor participation and achieve more realistic pricing, reduce listing pressure and increase the chances of a stable post-listing performance.

Additionally, SEBI recently allowed companies to revise IPO fresh issue sizes by up to 50% without refiling draft papers, giving issuers more flexibility during volatile markets.

How OYO Operates Its Hotel Network

OYO follows an asset-light business model, where it partners with independent hotel owners instead of owning properties directly. Through its technology platform, OYO helps hotels standardise pricing, improve room visibility across booking platforms, and manage operations more efficiently.

This model allows hotel owners to increase occupancy and demand while giving customers a more consistent stay experience across locations. By relying heavily on technology, centralised bookings, and brand partnerships, OYO has been able to scale rapidly without investing heavily in physical real estate assets.

Expansion & Premiumization Ahead Of IPO

As part of its pre-IPO growth strategy, OYO is aggressively expanding its India presence while strengthening its premium hotel portfolio. According to Business Standards, the company plans to expand its company-serviced hotel network from 124 cities to more than 300 cities by FY26. It also aims to increase the booking revenue contribution from these properties from 22% to 44%.

The company is focusing heavily on high-demand markets such as leisure destinations, pilgrimage hubs, and key business corridors where travel demand remains strong. At the same time, OYO has expanded its premium offerings through brands like SUNDAY Hotels and Palette, while also strengthening its international footprint. Its acquisition of Motel 6 and Studio 6 has further expanded OYO’s presence in the US economy lodging market ahead of its planned IPO.

Bonus Issues Before IPO

Ahead of its planned IPO, OYO went through multiple bonus share restructuring moves to simplify its capital structure and improve shareholder participation. The company was initially reported to be considering a 1:1 bonus issue in September 2025 as part of its pre-IPO preparations.

Later, OYO proposed a significantly larger bonus structure, but the plan faced criticism due to its complexity and concerns about the equal treatment of shareholders. As a result, the company withdrew the earlier proposal in November 2025 and announced that it would introduce a simpler and more uniform bonus structure with automatic participation for shareholders.

Subsequent reports also mentioned a revised 1:19 bonus proposal with a record date of December 5, FY25, showing that OYO continued to refine its shareholding structure ahead of the public listing. These restructuring steps could be largely seen as efforts to streamline ownership and improve liquidity before the IPO launch.

Is OYO profitable?

OYO has shown a noticeable financial turnaround over the last few years after facing heavy losses during and after the pandemic period. In FY25, OYO reported revenue of around Rs. 6,325.9 cr, up from Rs. 5,541.5 cr in FY24, reflecting improving travel demand and stronger operational execution. 

The company’s EBITDA also improved sharply to nearly Rs 1,109 cr in FY25 from Rs 859.9 cr in FY24.

More importantly, OYO remained profitable for the second consecutive year, with net income rising to around Rs 271.8 cr. in FY25 from Rs 141.2 cr. in FY24. This marks a significant recovery from the large losses the company reported in FY22 and FY23.

According to Moody’s, OYO’s EBITDA could further rise to nearly Rs 2,496 cr in FY26, supported by cost optimisation, better contribution from premium hotel brands, and earnings from its G6 Hospitality acquisition in the US.

This improvement in profitability might be important because investors had earlier raised concerns about OYO’s cash burn, debt levels, and long-term business sustainability ahead of oyo parent prism ipo plans.
Also Read: Oyo IPO: Prism Shareholder Approve Rs 6,650 Cr Issue