OYO Parent Prism Gets Sebi Approval For Rs 6,650-Crore IPO: Key Things Investors Should Know

OYO’s parent company Prism has received approval from market regulator Securities and Exchange Board of India (Sebi) for its planned initial public offering (IPO), according to reports. This brings the company closer to listing its shares on the stock market.

Prism is now preparing to file its Updated Drat Red Herring Prospectus (UDRHP-1), which is expected in early July. The document will be placed in the public domain for a 21-day comment period before the IPO proceeds further.

The IPO is expected to draw significant attention from investors, given OYO’s scale and its presence across hotels, holiday homes and other travel-related services in India and overseas markets.

OYO Opts For Confidential IPO Filing Route

Prism has opted for the confidential pre-filing route for its IPO, which allows a company to share its draft documents with the regulator without immediately disclosing full financial and business details to the public.

After Sebi reviews the papers and gives its observations, the company is required to update the documents and file a revised version before moving ahead with the IPO. This route is part of the regular IPO approval process and is increasingly being used by large companies, as it gives them more flexibility in planning the timing of their stock market listing.

OYO IPO Size, Valuation

The proposed IPO is expected to value Prism at around $7-8 billion, as per reports. The company had earlier filed its confidential DRHP with Sebi at the end of December 2025. The filing came after approval from shareholders at an extraordinary general meeting held on December 20, 2025. The IPO is expected to include a fresh issue of shares worth up to Rs 6,650 crore.

OYO IPO Book-Running Lead Managers

Prism has appointed a large group of investment banks to manage the public issue. The book-running lead managers include Axis Capital, Citibank, Goldman Sachs, ICICI Securities, SBI Capital Markets, JM Financial, InCred Capital and Intensive Fiscal Services.

OYO’s Push Into Premium Hospitality Segment

Ahead of its market debut, Prism has been expanding its footprint across key geographies, including India, the US and Europe. The company has also been focusing on increasing its share of self-operated hotels and scaling premium hospitality brands such as Sunday Hotels and Palette Hotels.

It has also entered the vacation homes segment in India through its European brand DanCenter, including rental offerings in destinations such as Goa. In parallel, the company has increased its presence in religious tourism markets.

OYO’s Earlier IPO Attempts

This is not Prism’s first attempt to enter the stock market. The company had earlier filed for an IPO in 2021, planning to raise Rs 8,430 crore, and made another attempt in 2023 with updated documents. However, both plans were later withdrawn due to weak global market conditions and less favourable investor sentiment toward new-age tech companies.

This time, the company is returning to the IPO process after working on improving its financial performance and operations, while also expanding its business globally.

OYO Strengthens Governance Ahead of IPO

Prism recently appointed former Sebi chairman Ajay Tyagi as an independent director on its board.

In a separate development, rating agency Moody’s has maintained its B2 corporate family rating for Prism with a stable outlook. The agency expects Prism’s Ebitda to improve significantly in FY26, supported by acquisitions and cost optimisation efforts, along with contributions from its international business.