Prism, the parent company of travel-tech unicorn OYO, is preparing to launch its initial public offering (IPO) in November, subject to market conditions, industry sources told Fortune India.
The hospitality company may cut the proposed issue size to up to ₹3,350 crore from ₹6,650 crore outlined in the IPO document submitted to the Securities and Exchange Board of India (Sebi) in June, a source said. The proposed reduction follows stronger cash generation and an improving balance sheet, which have lowered the company's funding requirements, the source added.
In its updated draft red herring prospectus (UDRHP), dated June 29, 2026, Prism had proposed to raise up to ₹6,650 crore entirely through a fresh issue of shares. The offering does not include an offer for sale (OFS), meaning existing investors, including SoftBank, founder Ritesh Agarwal, Microsoft, Airbnb, Peak XV Partners, Lightspeed, Greenoaks Capital and Khazanah Nasional, are not slated to sell their shares through the IPO.
Debt repayment to get bulk of IPO proceeds
Under the original proposal, Prism planned to use ₹4,987.5 crore from the net IPO proceeds to repay or prepay outstanding borrowings, with the balance earmarked for general corporate purposes. The proposed reduction in the issue size could lead to a revision in the allocation of proceeds.
In September 2025, OYO renamed its parent entity Prism to bring its expanding international hospitality and related businesses under a common corporate identity. Its portfolio includes Motel 6, Studio 6, Belvilla, DanCenter, Innov8 and Weddingz.in, alongside the OYO brand.
In an earlier interview with Fortune India this year, founder and CEO Ritesh Agarwal said the rebranding reflected the company's evolution as travellers increasingly sought premium and mid-market accommodation, while OYO continued to cater to the budget segment.
OYO initially focused on providing clean and comfortable budget accommodation in a market with limited branded options. Over time, rising customer aspirations and incomes have fuelled demand for premium and mid-market travel experiences, Agarwal said.
Prism reported revenue of ₹6,325.9 crore in FY25, up 14% from ₹5,541.6 crore in FY24, supported by growth in premium stays, international markets and improved pricing.
Total sales increased 16% year-on-year to ₹6,252.8 crore. EBITDA stood at ₹942.1 crore, marking the company's second consecutive year of profitability, although it declined 26% from FY24 as Prism increased investments to support future growth.
Prism filed a confidential draft red herring prospectus with Sebi in December 2025 and submitted an updated draft on June 29, 2026. The company subsequently deferred its IPO plans amid market volatility.