After years of delays, revised plans and multiple attempts to enter the public markets, OYO’s parent company Prism has cleared one of its biggest hurdles yet.
The hospitality technology company has received approval from the Securities and Exchange Board of India (SEBI) for its proposed Rs 6,650 crore initial public offering (IPO), moving the company significantly closer to a stock market listing.
The approval marks a major milestone for founder Ritesh Agarwal and his team, who have spent several years navigating a challenging path to the public markets amid changing market conditions, valuation resets and investor concerns.
A Long-Awaited Return to the IPO Track
For OYO, the latest development is about much more than regulatory approval. It represents the revival of one of India’s most closely watched startup listing journeys.
The company first filed for an IPO in 2021 but later shelved its plans amid volatile market conditions and concerns around valuation. Subsequent listing efforts were also delayed as the company focused on improving profitability and strengthening its financial position.
In December 2025, Prism confidentially filed draft IPO papers with SEBI, seeking to raise Rs 6,650 crore through a fresh issue of shares. The confidential filing route allowed the company to progress with regulatory reviews away from public scrutiny.
Now, with SEBI’s approval in hand, the company is expected to move toward the next phase of the listing process, including the filing of updated prospectus documents.
Why This IPO Matters
The significance of the IPO extends beyond OYO itself. The public issue is likely to be viewed as a key test of investor appetite for India’s new-age technology companies, particularly those that have shifted their focus from growth-at-all-costs to profitability and operational efficiency.
Unlike its earlier IPO attempts, OYO is entering the market after reporting improved financial performance and sustained profitability metrics.
According to previous disclosures, Prism reported revenue of Rs 6,253 crore in FY25, while net profit increased to Rs 245 crore. The company also recorded its twelfth consecutive EBITDA-positive quarter, reflecting a significant turnaround from the heavy-loss years that once defined many startup businesses.
The improved financial profile is expected to strengthen its investment case as it prepares to approach public market investors.
A Different OYO Than the One That Filed in 2021
Much has changed since OYO first explored a stock market listing. The company, which began as a budget hotel aggregator, has spent recent years expanding its presence across hospitality segments while focusing on operational discipline and profitability.
In 2025, the company also rebranded its corporate entity from Oravel Stays to Prism, reflecting its broader global ambitions beyond its original business model.
Today, OYO operates across multiple geographies and hospitality formats, making it a very different company from the one that first approached public investors several years ago.
Reports suggest Prism is targeting a valuation of approximately $7 billion to $8 billion, significantly lower than the levels discussed during its earlier public market ambitions but more aligned with current investor sentiment toward technology and consumer internet companies.
