OYO Parent PRISM Files Confidential IPO Papers with SEBI for Rs 6,650 Crore Offering
PRISM (OYO Parent) has confidentially filed IPO papers with SEBI targeting Rs 6,650 crore fundraise at $7-8 billion valuation. The company demonstrated strong financial performance in Q1 FY26 with net profit exceeding Rs 200 crore and 47% revenue growth. Moody's expects EBITDA to double to $280 million driven by strategic acquisitions and premium expansion.
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PRISM (OYO Parent) has confidentially filed draft offer documents with the Securities and Exchange Board of India (SEBI) for its initial public offering, marking a significant step toward its planned public offering. The company received shareholders' approval at an Extraordinary General Meeting held on December 20 to raise up to Rs 6,650 crore through a fresh issue of equity shares, subject to regulatory approvals and market conditions.
IPO Valuation and Banking Syndicate
The proposed public offering is expected to value the company in the range of $7-8 billion. PRISM initially appointed four major financial institutions as book-running lead managers but has since expanded its banking syndicate to include additional banks.
| Parameter: | Details |
|---|---|
| Fundraise Target: | Rs 6,650 crore |
| Expected Valuation: | $7-8 billion |
| Lead Managers: | ICICI Securities, Axis Capital, Goldman Sachs, Citibank |
| Approval Date: | December 20 (EGM) |
Strong Financial Performance in Q1 FY26
PRISM reported a robust start to the financial year, posting a net profit of over Rs 200 crore in Q1 FY26. The company demonstrated strong operational momentum with revenue rising 47% year-on-year to Rs 2,019 crore, while gross booking value jumped significantly to Rs 7,227 crore, representing a 144% increase.
| Financial Metric: | Q1 FY26 | Growth (YoY) |
|---|---|---|
| Net Profit: | Over Rs 200 crore | - |
| Revenue: | Rs 2,019 crore | +47% |
| Gross Booking Value: | Rs 7,227 crore | +144% |
Previous IPO Attempts and Market Context
PRISM first initiated the IPO process in 2021 and filed offer documents with SEBI, followed by subsequent filings with updated financial and operational disclosures. However, the company withdrew its IPO plans amid heightened global market volatility and weakening macroeconomic conditions following the Russia-Ukraine conflict, which significantly impacted investor sentiment.
Business Expansion and Strategic Acquisitions
Since withdrawing its previous IPO plans, the company has expanded aggressively in India and abroad while sharpening its premium portfolio through brands such as SUNDAY Hotels and Palette. PRISM has strengthened its international presence through the acquisition of US-based G6 Hospitality, the economy lodging franchisor and operator of Motel 6 and Studio 6.
| Strategic Initiative: | Details |
|---|---|
| Premium Brands: | SUNDAY Hotels, Palette |
| International Acquisition: | G6 Hospitality (US) |
| Portfolio: | Motel 6, Studio 6 |
| Expansion Focus: | India and international markets |
Recent Corporate Actions
In preparation for the current IPO, the company has undertaken strategic corporate actions to optimize its share structure. PRISM announced a 1:1 bonus issue in September, providing one additional equity share for every share held, followed by a 1:19 bonus issue in December, issuing one equity share for every nineteen shares held.
Credit Rating and Future Outlook
Moody's recently reaffirmed PRISM's B2 corporate family rating with a stable outlook. The ratings agency projects robust growth prospects, expecting the company's EBITDA to more than double to approximately $280 million in FY26. This growth is anticipated to be supported by earnings from the G6 Hospitality acquisition, expansion of premium storefronts, and continued cost optimization initiatives.
Regulatory Process
SEBI's confidential pre-filing mechanism provides several advantages for issuers, allowing companies to engage with the regulator and refine disclosures before making offer documents public. This process offers flexibility on timing, reduces market scrutiny during the regulatory review phase, and enables companies to test investor appetite before launching the IPO. The confidential filing route has gained traction among new-age companies such as Meesho, Swiggy, and Tata Play.
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