For years, Oyo has remained one of the most closely watched names among India’s new-age companies. Now, its parent company, Prism, has moved a step closer to Dalal Street.
Prism has filed its Updated Draft Red Herring Prospectus (UDRHP-I) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
This IPO is entirely a fresh issue. That means the money raised will go to the company instead of current shareholders.
Here’s a look into Prism’s business, financial performance, global expansion plans and how it intends to use the IPO proceeds.
A Rs 6,650-crore fresh issue with no Offer for Sale
According to the draft papers, Prism plans to raise up to Rs 6,650 crore through a fresh issue of equity shares. There is no Offer for Sale (OFS) in the proposed IPO.
This means that the existing investors, including founder Ritesh Agarwal, SoftBank, Microsoft, Airbnb, Peak XV, Lightspeed and other shareholders, are not selling any shares through the public issue.
The company may also raise up to Rs 1,330 crore through a pre-IPO placement before filing the final Red Herring Prospectus. If that happens, the amount raised through the fresh issue will be reduced accordingly.
IPO snapshot
| Prism IPO | Details |
| IPO Size | Rs 6,650 crore (Fresh Issue) |
| Offer for Sale | Nil |
| Possible Pre-IPO Placement | Up to Rs 1,330 crore |
| Listing | NSE & BSE |
| Main Use of Funds | Debt repayment and general corporate purposes |
Most of the money will go towards reducing debt
One of the biggest takeaways from the filing is where the IPO money will be used.
According to the draft papers, Rs 4,987.5 crore from the net proceeds has been placed for repayment or prepayment of borrowings. The remaining funds will be used for general corporate purposes.
Since the issue is entirely a fresh issue, Prism itself will receive the IPO proceeds, unlike an OFS where the money goes to selling shareholders.
Who owns Oyo parent Prism?
One of the interesting aspects of Prism’s shareholding is that while the company has attracted several global investors over the years, control continues to rest with its promoter group.
According to the Updated Draft Red Herring Prospectus (UDRHP-I), the promoters together hold 66.76% of the company’s fully diluted share capital before the IPO.
Prism: Promoters and largest shareholders
| Shareholder | Stake (Fully Diluted) |
| SVF India Holdings (Cayman) Ltd | 40.04% |
| RA Hospitality Holdings (Cayman) | 20.12% |
| Ritesh Agarwal | 6.59% |
| Oravel Employee Welfare Trust | 5.38% |
| Patient Capital Investments | 3.81% |
| Five Stars Capital | 2.77% |
| Lightspeed Venture Partners | 1.74% |
| A1 Holdings (Grab) | 1.62% |
| Star Virtue Investment | 1.62% |
| Tanjung Buai Ventures | 1.41% |
| Airbnb | 1.22% |
| Peak XV Partners | 1.06% |
Prism IPO: Shareholding at a glance
| Category | Details |
| Total promoter holding | 66.76% |
| Largest shareholder | SVF India Holdings (40.04%) |
| Founder’s direct stake | Ritesh Agarwal – 6.59% |
| Major institutional investors | Employee Trust, Patient Capital, Lightspeed, Grab, Airbnb, Peak XV and others |
Financials performance of the company
The filing also shows an improvement in the company’s financial performance during the 9MFY26.
According to the draft papers, Prism reported revenue from operations of Rs 6,941 crore during the nine months ended December 31, 2025. This already exceeds its full-year FY25 revenue of Rs 6,259 crore.
Prism: Financial performance
| Particulars | 9MFY26 | FY25 |
| Revenue from Operations | Rs 6,941 crore | Rs 6,259 crore |
| Profit After Tax | Rs 748 crore | Rs 245 crore |
| EBITDA | Rs 2,127 crore | Rs 953 crore |
The company reported a profit after tax of Rs 748 crore during 9MFY26 compared with Rs 245 crore in FY25, while EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) increased to Rs 2,127 crore.
A global hospitality platform with multiple businesses
Prism is no longer only associated with Oyo hotels in India. According to the filing, the company now operates 43 brands across more than 35 countries, covering hotels, vacation homes, extended-stay properties and online listings.
The filing also noted that the company continues expanding its company-serviced hotel model in India through brands such as Sunday, Palette, Clubhouse, Townhouse and Townhouse Oak, where it has greater operational involvement in running hotels.
Prism: Global footprint
| Metric | As of Dec. 31, 2025 |
| Countries | 35+ |
| Brands | 43 |
| Hotels | 24,303 |
| Homes | 1,24,668 |
| Listings | 1,44,583 |
| Unique Customers Served | 11.94 crore |
According to the filing, around 67.6% of stays during 9MFY26 came through direct customer channels such as the company’s apps, websites and corporate platforms. Repeat customers accounted for 61.8% of bookings.
Disclaimer: The financial information and details regarding the IPO filing of Prism (Oyo’s parent company) are based on the company’s Updated Draft Red Herring Prospectus (UDRHP-I) submitted to SEBI. This coverage is for informational and educational purposes only and does not constitute an IPO investment recommendation, offer, or solicitation. Investors are advised to read the complete risk factors in the official offer documents and consult a SEBI-registered financial advisor to assess suitability before making any investment commitments. This disclaimer has been generated using AI to support user well-being and responsible content consumption.
