Hospitality giant PRISM, the parent company of OYO, has secured regulatory approval from the Securities and Exchange Board of India (SEBI) for its initial public offering. The company aims to raise up to ₹6,650 Cr through a fresh issue of equity shares. This development marks a crucial milestone in its third attempt to go public, positioning it for a much-anticipated market debut.
The Road to an IPO
The regulatory green light comes nearly six months after PRISM confidentially filed its draft red herring prospectus in December 2025. Following the approval, the company is expected to file its updated public offering documents in early July. This step moves the firm closer to launching its IPO after navigating a complex preparatory phase.
This marks PRISM's third effort to list on the public markets, following a withdrawn application in 2024 and an earlier attempt in 2021. The approval comes amid volatile market conditions that have caused other tech firms to delay their listing plans. PRISM's successful launch will be a significant indicator of investor sentiment in the current economic environment.
Financial Performance and Valuation
The company has demonstrated steady financial growth, reporting a 16% year-on-year revenue increase to ₹6,252.8 Cr in fiscal year 2025. Its net profit also grew by 7% to ₹244.8 Cr during the same period. Looking ahead, PRISM is reportedly targeting a net profit between ₹800 Cr and ₹1,000 Cr for fiscal year 2026.
For its public issue, the company is targeting a valuation between $7 billion and $8 billion. This is a substantial increase from its $2.3 billion valuation during a 2024 private funding round. Despite its profitability, the company maintains a considerable debt burden of over ₹7,000 Cr as it prepares for its listing.
Reinforcing confidence in its financial trajectory, global ratings agency Moody's recently reaffirmed PRISM's B2 corporate family rating with a stable outlook. The agency projects the company's EBITDA will more than double to approximately $280 million in FY26. This growth is expected to be driven by strategic acquisitions and ongoing cost optimization efforts.
Strategic Growth and Global Expansion
In a strategic shift, the company rebranded from OYO to PRISM to better represent its expanded identity as a global hospitality platform. Its portfolio now spans hotels, resorts, vacation rentals, and coworking spaces under brands like OYO, Motel 6, and DanCenter. This diversification is central to its long-term growth strategy and market positioning.
A key driver of its international expansion was the $525 million acquisition of G6 Hospitality, the parent company of the Motel 6 and Studio 6 chains in the United States. This acquisition is projected to contribute significantly to its earnings, adding an estimated ₹630 Cr in EBITDA. It also adds around $1.7 billion in gross booking value to the combined entity.
Alongside its global ambitions, PRISM is strengthening its presence in the premium hospitality segment within India. The company is expanding its Palette Hotels and Sunday Hotels brands to cater to a higher-end market. It is also capitalizing on the rise of religious tourism by growing its footprint in key pilgrimage destinations.
To bolster investor confidence ahead of its market debut, PRISM has also made key changes to its governance structure. The company recently appointed former SEBI chairman Ajay Tyagi as an independent director to its board. This move is intended to enhance corporate oversight and align with public market standards.
PRISM's successful navigation of the regulatory process for its ₹6,650 Cr IPO sets the stage for a significant public listing. Backed by a clear global expansion strategy, improving financials, and a strengthened leadership board, the company is well-positioned for its next chapter. The offering's success will now depend on prevailing market conditions and investor appetite for growth-oriented hospitality stocks.