Prism, the parent company of hospitality platform Oyo, has secured approval from markets regulator Sebi to proceed with its proposed ₹6,650 crore initial public offering (IPO), news agency PTI reported on Tuesday, citing people familiar with the development.
The proposed public offering is expected to value the company between $7 and $8 billion, the sources told PTI.
Prism filed IPO papers with Sebi in December
Oyo's parent firm Prism had filed its draft red herring prospectus (DRHP) or preliminary IPO papers with the Securities and Exchange Board of India (Sebi) in late December 2025 through the confidential pre-filing route.
The confidential filing route allows companies to begin the regulatory review process without immediately disclosing sensitive business and financial details to the public, providing more flexibility before formally launching the public issue.
The filing followed shareholders' approval at an Extraordinary General Meeting (EGM) held on December 20, 2025, where the company received consent to raise up to ₹6,650 crore through a fresh issue of equity shares, according to the news report by PTI.
The budget hotel aggregator initially filed for an IPO in 2021, seeking a valuation of up to $12 billion, according to a previous report by Mint.
When will Prism file its UDRHP?
Following Sebi's approval, the company's next step will be to file a public Updated Draft Red Herring Prospectus (UDRHP-1) which is expected to disclose key details of the proposed IPO and will be available for public review. Under the regulatory process, the document will remain open for public comments for 21 days, allowing investors and other stakeholders to provide feedback.
According to people familiar with the development, the company is targeting to file this by early July, the news report said. Once this stage is completed and any observations are addressed, Prism will be able to move ahead with the final stages of its IPO process. The price band and date of opening the issue for subscription is expected to be announced in the later stages.
The sources also told PTI that Prism is currently evaluating market conditions and broader listing timelines while preparing to file its UDRHP-1.
A key test for India's startup IPO market
Prism's proposed IPO is expected to be one of the most closely watched public offerings in India’s consumer technology and hospitality sector, because of its size and presence across both domestic and international markets. Market participants will closely watch the offering as a gauge of investor appetite for new-age technology businesses and the larger startup ecosystem.
Founded by Ritesh Agarwal, Oyo has grown from being a budget hotel aggregator into a global travel and hospitality platform with its presence across multiple countries. Through its parent entity Prism, it manages a wide portfolio of hotels, holiday homes and related travel services.
(with inputs from PTI)
