OYO parent PRISM files UDRHP to raise Rs 6,650 Cr via fresh issue only

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Key news

• PRISM, OYO’s parent company, has filed its Updated Draft Red Herring Prospectus (UDRHP-I) with SEBI, after getting the regulator’s approval earlier this month.
• It had confidentially filed its draft IPO papers in December 2025.

IPO structure

• The IPO is entirely a fresh issue of up to ₹6,650 crore, with no offer for sale (OFS).
• A pre-IPO placement of up to ₹1,330 crore is possible. If it happens, the fresh issue will shrink by that amount.
• The shares will list on the NSE and BSE.
• Because there is no OFS, existing investors are not selling shares in the IPO. These include SoftBank, Ritesh Agarwal, Microsoft, Airbnb, Peak XV, Lightspeed, Greenoaks and Khazanah.

Valuation

• PRISM is expected to target a valuation of about $7–8 billion.
• That is lower than its 2021 listing attempt.

Use of funds

• ₹4,987.5 crore will go toward repaying or prepaying borrowings.
• The rest is for general corporate purposes.

Lead managers

• Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, SBI Capital Markets, JM Financial, InCred Capital and Intensive Fiscal Services.

Shareholding (as of the DRHP filing)

• SoftBank: 40.04% (largest shareholder)
• Ritesh Agarwal: 26.71% (through RA Hospitality Holdings and personally)
• Oravel Employee Welfare Trust: 5.39%
• Patient Capital: 3.81%
• Five Stars Capital: 2.77%
• Lightspeed: 1.74%
• Airbnb: 1.22%
• Peak XV Partners: 1.06%

Financials (9M FY26)

• Revenue from operations: ₹6,941 crore.
• Net profit: ₹748 crore, about three times the ₹245 crore reported for FY25.

Business scale (as of Dec 31, 2025)

• 43 brands in 35+ countries.
• 24,303 hotels, 124,668 homes and 144,583 listings.
• Company-serviced hotel storefronts in India grew to 1,573 from 1,053 at the end of FY25. This segment makes up nearly half of India’s gross booking value (GBV).

Growth drivers

• The US business, boosted by the G6 Hospitality acquisition, contributed over 52% of global GBV in the nine-month period.
• The European homes business also grew significantly.
• Direct channels accounted for 67.6% of stays.
• OYO Wizard and My6 have a combined loyalty base of 26.4 million members.