OYO Parent PRISM Files Updated DRHP for ₹6,650 Crore IPO; Issue Comprises Fresh Shares Only

PRISM, the parent of OYO, has filed an updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for a ₹6,650 crore initial public offering (IPO). The proposed public issue comprises entirely a fresh issue of equity shares, with no Offer for Sale (OFS) by existing shareholders. 

The company had earlier filed its draft IPO papers through SEBI's confidential pre-filing route in December 2025 and recently received the regulator's approval to launch its maiden public offering. 

OYO IPO Details 

The proposed IPO comprises a ₹6,650 crore fresh issue of equity shares and does not include an Offer for Sale (OFS). As a result, none of the existing shareholders, including founder Ritesh Agarwal, SoftBank's SVF India Holdings, Microsoft, Airbnb, Peak XV, Lightspeed, Khazanah, and Greenoaks Capital, will sell shares as part of the IPO. 

The company may also undertake a pre-IPO placement of up to ₹1,330 crore before filing the Red Herring Prospectus (RHP). If the placement is completed, the size of the fresh issue will be reduced accordingly. 

How Will OYO Use the IPO Proceeds? 

According to the filing, OYO plans to utilise ₹4,987.5 crore from the net proceeds towards the repayment or prepayment of borrowings. 

The remaining proceeds will be used for general corporate purposes. 

OYO Reports Higher Revenue and Profit 

The updated filing comes after an improvement in the company's financial performance. 

For the 9 months ended December 31, 2025, PRISM reported: 

PRISM's Business Operations 

PRISM operates 43 brands across more than 35 countries, covering hotels, vacation homes, extended-stay properties, and online accommodation listings. 

As of December 31, 2025, PRISM's network comprised 24,303 hotels, 124,668 homes, and 144,583 listings across its operations in more than 35 countries. 

The company has served more than 119 million unique customers since its inception. 

OYO’s India and International Business Expansion 

In India, OYO expanded its company-serviced hotel portfolio, increasing storefronts to 1,573 as of December 2025 from 1,053 in March 2025. 

Gross Booking Value (GBV) from these hotels reached ₹1,346 crore during the first 9 months of FY26, around 65% higher than the full FY25 level. Company-serviced hotels accounted for nearly half of India's GBV during the period. 

Internationally, the acquisition of G6 Hospitality, which owns the Motel 6 and Studio 6 brands, contributed to the company's US business expansion. 

The US business recorded a GBV of ₹12,022 crore during the first 9 months of FY26, compared with ₹4,713 crore in FY25, contributing more than 52% of PRISM's global GBV. 

In Europe, the company's homes and listings business expanded to 269,251 properties as of December 2025 from 208,901 at the end of FY25. 

Conclusion 

PRISM has filed updated IPO papers with SEBI for a ₹6,650 crore public issue comprising only a fresh issue of equity shares. The company intends to use a substantial portion of the proceeds to reduce debt, while its updated filing also reflects growth in revenue, profitability, and operations across domestic and international markets.