Prism Hotels and Resorts, the parent company of OYO, has filed its Updated Draft Red Herring Prospectus (UDRHP) with SEBI, taking a major step toward its long-awaited stock market listing. The proposed IPO is built entirely as a fresh issue, with no offer for sale from existing shareholders. The company is also considering a pre-IPO placement of up to Rs 1,330 crore before filing the final red herring prospectus.
IPO structure keeps the issue focused on fresh capital
The public issue is sized at up to Rs 6,650 crore and does not include any secondary share sale. That means the money raised will go directly into the company rather than being used for exits by existing investors. If the pre-IPO placement goes through, the amount raised in that round will be reduced from the final fresh issue size.
Prism had earlier received Sebi’s approval for the proposed listing and had confidentially filed its draft papers in December 2025 after shareholder approval. According to the Moneycontrol report that the company is targeting a valuation of around $7 to $8 billion, which is lower than the roughly $12 billion it had sought in its aborted 2021 listing attempt.
Borrowing repayment is the biggest use of proceeds
According to the UDRHP, Prism plans to use Rs 4,987.5 crore from the issue proceeds to repay or prepay borrowings. The remaining funds are earmarked for general corporate purposes. This gives the IPO a clear balance-sheet angle, with debt reduction emerging as the main priority.
The filing also shows that marquee investors including SoftBank’s SVF India Holdings, Microsoft, Airbnb, Peak XV Partners, Lightspeed, RA Hospitality Holdings, Global Ivy Ventures and InCred will not be selling any shares in this offering. That keeps the issue fully anchored to fresh capital rather than promoter or investor exits.
Financial performance strengthens the listing case
Prism’s financials have improved ahead of the IPO move. For the first nine months of FY26, revenue from operations stood at Rs 6,941 crore, up about 11% from Rs 6,259 crore in FY25. Profit after tax rose to Rs 748 crore, compared with Rs 245 crore in the previous fiscal year.
EBITDA more than doubled to Rs 2,127 crore from Rs 953 crore a year earlier, while EBITDA excluding exceptional items, share-based payment expenses and other income came in at Rs 1,968 crore.
FAQs
- Is Prism the parent company of OYO?
Yes. Prism Hotels and Resorts, the parent company of OYO, is preparing to list on the stock market.
- How will Prism use the IPO funds?
Most of the money raised will be used to repay or prepay the company’s existing borrowings. The remaining amount will be used for general corporate purposes.
- What does a fresh issue mean in an IPO?
A fresh issue means the company creates and sells new shares to raise capital. The funds go directly to the company, not existing shareholders.
- Will existing investors sell shares in the Prism IPO?
No. The proposed IPO does not include an offer for sale, so existing investors will not sell their shares through this issue.
- What is UDRHP?
UDRHP stands for Updated Draft Red Herring Prospectus. It is a document filed with SEBI that contains key details about a company’s proposed IPO.
