Source-led article
OYO’s Parent PRISM Files Third IPO Attempt, Eyes ₹6,650 Cr Fresh Issue
OYO’s parent company, PRISM, has initiated its third attempt to go public in India, filing an updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This latest effort focuses on a fresh issue of shares aiming to raise ₹6,650 crore, without any Offer for Sale (OFS) component. The hospitality unicorn plans to allocate the largest portion of these proceeds, ₹4,987 crore, towards debt repayment or prepayment.
This move comes as OYO presents significantly improved financial performance compared to its previous IPO attempts. The company is also considering a pre-IPO placement of up to ₹1,330 crore.
Key facts
| Metric | Details |
|---|---|
| IPO Attempt | Third |
| Issue Type | Fresh Issue (no OFS) |
| Target Amount | ₹6,650 Crore |
| Debt Repayment | ₹4,987 Crore |
Financial Performance and Global Strategy
PRISM reported a net profit of ₹748 crore in the first nine months of FY26, marking a nearly three-fold increase from its full-year FY25 profit. Operating revenue also saw an 11% year-on-year rise, reaching ₹6,941 crore. This stronger financial standing underpins the current IPO filing.
The company is also strategically repositioning itself as a global hospitality platform rather than solely an India-centric business. Its network now includes over 24,000 hotels and 1.25 lakh homes. Operations in Europe and the US have emerged as significant growth drivers, contributing over 83% of its top line in the first nine months of FY26, with India accounting for the remainder.
Legal Challenges Remain
Despite the improved financials, the updated DRHP also highlights ongoing legal issues faced by PRISM. The unresolved Zostel dispute remains a concern, with a potential adverse outcome requiring PRISM to transfer up to 7% of its shareholding.
Additional legal risks include human trafficking lawsuits in the US, a tax dispute involving its shareholder SoftBank, and a pending antitrust penalty in India. These legal clouds present a challenge for public investors as they weigh OYO’s financial resurgence against its existing liabilities.
Implications for Indian Startups
This development is significant for the Indian startup ecosystem, particularly for companies considering public listings. OYO’s repeated attempts and its current strategy of showcasing strong profitability, while addressing debt, could set a precedent for other unicorns. The outcome of this IPO will be closely watched as a test of investor confidence in growth-stage Indian tech companies with a global footprint and complex legal landscapes. It underscores the importance of financial discipline and addressing long-standing disputes ahead of public market debuts.