OYO's journey to the stock market has been one of the longest and most followed in Indian startup history. After two withdrawn attempts in 2021 and 2024, the company’s parent, now called PRISM (formerly Oravel Stays), has cleared a major regulatory hurdle. It is on track for a public listing in the second half of 2026. This has raised a question among retail investors: can you buy in early, and should you?
This article explores the current status of the IPO, what "buying before the IPO" means for a company like OYO, and the factors to consider before investing, whether through pre-IPO shares or the public offer itself.
Where the IPO Stands Right Now
On June 30, 2026, PRISM submitted its UDRHP-I to SEBI in light of the feedback letter that was received by the company from SEBI on June 5, 2026. This submission followed after the receipt of the approval due to the confidential pre-filing stage where the company obtained feedback from regulators without sharing its finances.
The main figures include:
- Issue size: Size of the Issue: ₹6,650 crores; 100% fresh issue and no offer for sale. Thus, there will be no sale of shares by existing investors as a part of this listing process.
- Use of proceeds: Most of the funds nearly 75% is designated for repaying or prepaying debt.
- Financials (9m FY26) : ₹748 crore profit for the nine months ending December 2025, on ₹6,941 crore of revenue. FY25 marked the company's first year of positive EBITDA of Rs 2,127 crore. 80% of the revenue comes from overseas markets.
- Target valuation: Reports suggest a value of roughly $7–8 billion, significantly lower than the $9.6 billion PRISM sought in its 2021 attempt.
- Timeline: The price band, lot size, and subscription dates have yet to be determined. These typically follow a 21-day public comment period on the UDRHP, followed by the final Red Herring Prospectus.
In short, there is no live subscription window yet, so OYO stock is not available through the IPO process today.
What "Buying Before the IPO" Actually Means
For a company like OYO, people generally mean one of two things:
- Waiting for the public IPO subscription window. This is the common route. Once the price band and dates are announced, retail investors can apply for shares through their broker like any other IPO.
- Buying unlisted or pre-IPO shares now. Shares of private companies like PRISM sometimes trade in grey or unlisted markets before a formal listing, often through specialized platforms or brokers focused on unlisted equity. This is a fundamentally different, and riskier, kind of transaction. Pricing is unclear, liquidity is low, and these shares usually can't be sold again until the company actually lists, locking you in with no exit until the IPO occurs, if it happens at all. Also shares are locked in for 6 months post listing. OYO's history of two withdrawn IPOs serves as a reminder that "pre-IPO" bets do not always lead to a listing on the expected timeline or at the anticipated valuation.
The Case For: Why This Attempt Looks Different
OYO's 2026 filing is based on a genuinely different foundation than its earlier attempts:
- It's profitable now: In FY25, the positive EBITDA, along with the nine-month profit in FY26, marks a radical departure from the story of growth at a loss that was responsible for the failure of the company's 2021 DRHP.
- It has shrunk in size but grown in focus: OYO has vacated unprofitable markets like China and some regions of Europe, taking over 150,000 rooms out of its business portfolio. Now, OYO operates in India, South-East Asia, and some regions of Europe.
- No OFS. Since the full ₹6,650 crore goes to the company rather than to early investors, the issue structure emphasizes funding the business mainly for debt repayment instead of providing insiders an exit. That can signal confidence, but it also means early backers have not yet revealed their timing.
- Valuation reset: With a target of $7–8 billion, down from the original $9.6 billion request, the pricing is more aligned with what the improved business can support.
The Case For Caution
None of this removes the risks tied to this specific company and this kind of investment:
- A history of losses: Long-term profitability under GAAP, rather than just a single strong period, is still not proven.
- Debt load: Approximately ₹7,485 crore in debt remains on the books, even after the planned IPO-funded paydown.
- Business complexity: Operating as a property aggregator, franchise partner, and hotel manager across multiple countries is harder to assess than a simpler business model.
- Partner relationship risk: OYO has had conflicts with hotel owners on revenue sharing leading to reputational issues in the past.
- Valuation uncertainty: Until the price band is published, the estimated $7–8 billion figure is just that an estimate. The difference between what a private company is thought to be worth and what public markets will pay often leads to problems for IPO investors.
- Two prior withdrawals: It is important to remember that this is the third attempt, and nothing is guaranteed to proceed as planned this time.
The Bottom Line
OYO's 2026 IPO attempt is based on a stronger foundation than its previous tries: real profitability, a smaller and more focused business, and an issue structure that channels funds into the company instead of to early investors. It is definitely a much different story from 2021. Yet, being "different" is not necessarily "safe." The valuation, debt, and business complexity all warrant careful consideration once the actual figures are public.
This is not investment advice, this is a summation of the current situation and considerations to bear in mind. Whether OYO is a good buy depends on your risk tolerance, time horizon and view of the hospitality sector. It is advisable to go through the final prospectus carefully or take the help of a SEBI-registered investment advisor before investing.