Prism, the parent firm of hospitality major OYO, has updated its IPO filing with SEBI for a ₹6,650 crore fresh share issue. The company plans to use the majority of these funds to pay down debt, supported by a recent sharp rise in revenue and profit.
What Happened
Prism, the company behind the global hospitality brand OYO, has submitted updated draft papers to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aimed at raising ₹6,650 crore. Unlike many recent public offers that include a mix of new shares and existing shares sold by early backers, this IPO consists entirely of a "fresh issue" of shares. This structure means no current shareholders, such as Ritesh Agarwal, SoftBank, Microsoft, or Airbnb, are selling their stakes through this offering. The company has also noted the possibility of a pre-IPO placement of up to ₹1,330 crore, which, if completed, would reduce the size of the final public issue.
The Debt Reduction Strategy
A core focus of this fundraising is debt management. The company plans to use roughly ₹4,987.5 crore—the vast majority of the net proceeds—to repay or prepay its outstanding borrowings. For investors, reducing debt is a critical move as it lowers interest expenses, potentially improving the company's future net profit and strengthening its balance sheet. The remaining funds are designated for general corporate purposes.
Financial Performance Snapshot
The updated filing reveals a notable improvement in the company's financial health during the first nine months of the 2026 fiscal year. Revenue from operations reached ₹6,941 crore by December 31, 2025. This figure is higher than the total revenue of ₹6,259 crore reported for the entire 2025 fiscal year. Profitability also showed a significant trend, with profit after tax rising to ₹748 crore in the first nine months of FY26, compared to ₹245 crore in the full fiscal year 2025. This growth indicates a recovery and scaling of operations across its global network.
Global Operations and US Expansion
The company has expanded its footprint significantly, now managing operations across 35 countries. A major factor in its recent performance is the growth in the United States, which contributed over 52% of the company's global Gross Booking Value (GBV) during the first nine months of FY26. This surge was largely driven by the acquisition of G6 Hospitality, which manages the Motel 6 and Studio 6 brands. The company's GBV in the US reached ₹12,022.51 crore in this period, compared to ₹4,712.83 crore in FY25. Meanwhile, the India business also saw its GBV increase to ₹1,346.45 crore.
Regulatory Relief and Rating Outlook
Prism recently received favorable updates on two fronts. The Delhi bench of the Income Tax Appellate Tribunal (ITAT) quashed a tax demand of ₹3,885 crore, ruling that share premiums on certain convertible preference shares were not taxable under Angel Tax provisions. Additionally, S&P Global Ratings has revised the company's outlook from 'Stable' to 'Positive,' while affirming its 'B' issuer credit rating. This revision reflects the company's improved profitability, better cash generation, and the potential for a stronger balance sheet post-IPO.
What Investors Should Track
For those observing the IPO process, the key monitorables include the timing of the share sale, the completion of any pre-IPO placement, and the final reduction in debt levels following the fundraising. Investors will also look to see if the recent momentum in revenue and profit can be sustained, particularly as the company integrates its US acquisitions and continues to manage its global network of hotels and homes.