Oyo Parent Prism Halves IPO Size, Leaving More Debt to Be Repaid From Cash Flow

Oyo parent Prism has cut its planned IPO nearly in half, to INR 33.5 billion ($353 million) from INR 66.5 billion ($702 million). That means the offering will now retire about half as much debt as originally planned. Prism disclosed the change Thursday in an addendum to its updated draft red herring prospectus.

A person familiar with the matter told Skift that Prism does not need to raise as much as it once expected. “With cash generation remaining strong and the balance sheet improving, the funding requirement has come down,” the person said. “The objective is to raise what the business needs while keeping the capital structure efficient.”