Oyo’s parent company, Prism, has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (Sebi) for its proposed Rs 6,650-crore initial public offering (IPO), after receiving the regulator’s in-principle nod for the issue earlier this month.
The IPO comprises an entirely fresh issue of equity shares, with no offer-for-sale component, meaning existing shareholders—including SoftBank, Prism founder Ritesh Agarwal, Microsoft, Airbnb, Peak XV Partners, Lightspeed, Greenoaks and Khazanah—will not dilute their stakes through the listing. The promoter group held 66.76% of the company ahead of the issue.
Prism plans to use Rs 4,987.5 crore of the net proceeds to repay or prepay borrowings, while the remaining funds will be deployed for general corporate purposes. The company may also undertake a pre-IPO placement of up to Rs 1,330 crore, which would reduce the size of the fresh issue.
The issue is being managed by Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, SBI Capital Markets, JM Financial, InCred Capital and Intensive Fiscal Services.
As per the draft prospectus, SoftBank remained the company’s largest shareholder with a 40.04% stake, followed by Ritesh Agarwal, who held a combined 26.71% stake through RA Hospitality Holdings and in his personal capacity. The Oravel Employee Welfare Trust owned 5.39%, while Patient Capital, Five Stars Capital, Lightspeed, Airbnb and Peak XV Partners were among the other shareholders.
For the nine months ended December 31, 2025, Prism reported revenue from operations of Rs 6,941 crore and a net profit of Rs 748 crore. The profit was more than three times the Rs 245 crore reported for FY25 and exceeded the company’s earnings in any previous full financial year. Total borrowings stood at Rs 7,485 crore as of December 31, 2025.
The company’s business mix has shifted sharply over the past two years following a series of overseas acquisitions. The acquisition of G6 Hospitality, the franchisor of the Motel 6 and Studio 6 brands, made the United States its largest market, contributing more than 52% of global gross booking value (GBV) during the nine months ended December 2025. Prism also acquired France-based Checkmyguest, expanding its European vacation-rental business alongside Belvilla and DanCenter. India, the market on which Oyo built its initial business, now contributes only about one-sixth of revenue.
Prism said it operates 43 hospitality brands across more than 35 countries, with a network of 24,303 hotels, 124,668 homes and 144,583 listings. Direct channels accounted for 67.6% of stays during the period, supported by a combined loyalty base of 26.4 million members across Oyo Wizard and My6. The company said it has served more than 119 million customers.
The IPO is being offered under Sebi’s institutional placement route, as it does not meet the regulator’s profitability track-record requirement for the standard listing route. Under the framework, at least 75% of the net offer must be allotted to qualified institutional buyers.
The company is reportedly targeting a valuation of $7-8 billion.
Monday’s filing marks the latest step in one of the longest IPO journeys among Indian startups. Oyo first filed for an IPO in September 2021 with a proposed an Rs 8,430-crore issue at a reported valuation of about $12 billion. The plan was stalled as market conditions weakened and Sebi sought updated financial disclosures. The company made another attempt through a confidential filing in late 2023, but withdrew that draft in May 2024, saying a planned debt refinancing would materially alter its financial statements. It reported its first annual profit in FY24, completed the acquisition of G6 Hospitality in December 2024, and confidentially filed again at the end of 2025.