Prism, the parent company of OYO, has refiled its IPO papers with SEBI to raise ₹6,650 crore through a fresh issue of shares. The company plans to use a large portion of the proceeds to reduce debt. This update follows a strong financial turnaround, with the company reporting higher profits in the first nine months of FY26 compared to the previous full fiscal year.
What Happened
Prism, the hospitality technology company known for OYO, has filed updated draft papers with SEBI for an initial public offering (IPO). The company aims to raise approximately ₹6,650 crore. Unlike many IPOs where existing investors sell their stakes to exit, this offering is entirely a fresh issue of shares. This means all money raised will go directly to the company to support its business, rather than going to early investors like SoftBank or founder Ritesh Agarwal, who will retain their holdings.
The Debt Reduction Plan
A primary goal of this IPO is to clean up the company's balance sheet. Prism intends to use roughly ₹4,987.5 crore from the proceeds to pay off or prepay its existing borrowings. Reducing this debt load is expected to lower interest costs, which historically have been a burden on the company's profitability. The company also has an option to raise up to ₹1,330 crore through a pre-IPO placement, which would reduce the final size of the public offer accordingly.
Financial Performance and Turnaround
The company’s financials indicate a significant shift in performance. In the first nine months of the fiscal year 2026 (ended December 31, 2025), Prism generated ₹6,941 crore in revenue. This is already higher than the total revenue of ₹6,259 crore recorded for the full fiscal year 2025. Profit after tax also saw a sharp increase to ₹748 crore for this nine-month period, up from ₹245 crore in all of FY25. This improvement highlights a trend toward greater efficiency and profitability.
Global and US Market Strategy
Prism continues to focus on its global footprint, operating 24,303 hotels and over 144,000 homes across 35 countries. A major growth driver has been its US operations, especially following the acquisition of G6 Hospitality, which operates the Motel 6 and Studio 6 brands. The US market has become a significant part of the business, contributing over 52% of the company's global Gross Booking Value, which stood at ₹12,022.51 crore in the first nine months of FY26.
Regulatory and Rating Context
Beyond the financials, the company has seen two important developments that impact its risk profile. First, the Income Tax Appellate Tribunal (ITAT) ruled in favor of the company, quashing a ₹3,885 crore tax demand. This resolves a significant past legal risk. Additionally, S&P Global Ratings has upgraded the company’s outlook to 'Positive' from 'Stable' while affirming a 'B' credit rating, citing better cash generation and the expected positive impact of the IPO on its financial health.
What To Watch Next
Investors will now track the timeline for the final IPO approval and the pricing of the shares. Key monitorables include whether the company proceeds with the pre-IPO placement and how quickly it executes the debt repayment plan once the funds are raised. The sustainability of the improved profit margins in the competitive hospitality sector will also remain an important area for long-term analysis.