Prism, the parent company of hospitality brand Oyo, has obtained approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The company plans to raise ₹6,650 crore in fresh capital and is set to file an updated draft red herring prospectus (DRHP) within the next two months.
This marks Prism's third attempt to go public, having previously filed confidentially in December. The first application was returned by SEBI in 2021 due to the need for updated financials. The company later submitted a revised application for a smaller IPO, significantly reducing its initial target from $1.2 billion.
Market Context
The approval comes at a challenging time for new-age companies, many of which are reassessing their IPO plans due to volatile market conditions. Notably, Walmart-owned PhonePe and Flipkart have postponed their listing timelines, while Zepto is expected to file its updated DRHP soon.
Company Valuation
Prism is targeting a valuation of approximately ₹50,000-60,000 crore (around $5-7 billion) for its public offering. This valuation is subject to market conditions and follows a recent capital raise in 2024, which valued the company at $2.3 billion, significantly lower than its peak valuation of $9 billion in 2021.
Recent Performance
In the April-June 2025 quarter, Oyo reported a net profit exceeding ₹200 crore, a significant increase from ₹87 crore in the same quarter the previous year. This growth reflects the company's recovery trajectory.
Expansion Efforts
Prism has also been focusing on expanding its international presence. In 2024, it acquired G6 Hospitality, the operator of the Motel 6 chain in the United States, for $525 million.
This IPO approval signals a renewed effort by Prism to capitalize on market opportunities, despite the current economic climate.
