Summary of this article
OYO parent Prism filed a confidential DRHP with SEBI to raise Rs 6,650 crore.
The company targets a $7-8 billion valuation following a 47 per cent revenue jump.
This third IPO attempt follows strong Q1 FY26 profits exceeding Rs 200 crore recently.
OYO IPO: The past year has been a significant one for the Indian primary market, with over 103 companies raising money via mainboard public issues. The excitement seen in the space is set to continue in the current year as well, with hospitality tech platform OYO’s parent company filing its Draft Red Herring Prospectus (DRHP).
OYO IPO
The draft papers have been filed via the confidential filing route with the Securities and Exchange Board of India (Sebi), according to a report by Moneycontrol, which cited sources privy to the matter. The company seeks to raise as much as Rs 6,650 crore through its initial public offering. Additionally, the public issue is set to consist of a completely fresh issue of equity shares with a valuation ranging between $7 and $8 billion.
Earlier, on December 20, PRISM secured shareholder approval at an extraordinary general meeting. The shareholders consented to allow the company to raise funds.
OYO’s Third IPO Gambit
Notably, this is OYO’s third attempt at tapping the primary market for funds. The company tried to raise funds via an IPO earlier in 2021 and 2023. However, the two attempts were withdrawn or lapsed due to various reasons such as regulatory scrutiny, poor market conditions, and a pivot toward improving profitability. In 2021, the company targeted a valuation of up to $12 billion and an initial raise of Rs 8,430 crore. Later in 2023, the company made a confidential pre-filing with Sebi, which was withdrawn due to weak market sentiment in 2024.
Earlier, the tech-based hospitality platform appointed ICICI Securities, Axis Capital, Goldman Sachs and Citibank as the book-running lead managers for its public issue. However, the company has reportedly expanded the number of managers.
OYO’s profit after tax more than doubled to Rs 200 crore in the June quarter of FY26, up from Rs 87 crore in the same quarter of the previous fiscal. The company’s revenue grew by 47 per cent to Rs 2,019 crore, while the company’s gross booking value (GBV) jumped 144 per cent to Rs 7,227 crore year-on-year.
What Is The Confidential Filing Method
The confidential filing method or the pre-filing method offers IPO-bound companies an option to initiate the public issue process without the need to disclose their draft offer documents to both the general public and competitors.
Under the normal process, companies file a DRHP, which is made public immediately. Under the confidential filing method, the company submits its draft documents to the Sebi privately. The documents are released to the public only when the company officially decides to go ahead with the IPO. Notably, this option was introduced in 2022 in India.
While OYO’s rationale for using the method is not known, companies typically opt for confidential filing to prevent competitors from seeing sensitive business data and to retain the ability to withdraw the public offer easily if market conditions turn adverse due to a sudden change in macro-economics or geopolitical disturbances.
The option also allows companies to bridge gaps in their draft documents without the pressure of public scrutiny. Several companies have opted for the confidential filing route in recent times, such as Swiggy, Vishal Mega Mart, Tata Play, Zepto and Physicswallah.
