Oyo-parent Prism, formerly known as Oravel Stays, has filed its Updated Draft Red Herring Prospectus-I (UDRHP-I) with market regulator Sebi for an IPO that will entirely comprise a fresh issue of shares worth up to Rs 6,650 crore, with no offer for sale component.
This comes after the company filed its confidential Draft Red Herring Prospectus (DRHP) with Sebi at the end of December last year as part of its much-awaited listing plans and received the market regulator’s approval earlier this month.
As per the latest IPO papers, the parent company of Oyo plans to use Rs 4,987.5 crore from the net proceeds for repayment or prepayment of borrowings. The remaining funds will be used for general corporate purposes. Since the IPO will entirely comprise a fresh issue of shares, all the IPO proceeds will be received by the company.
Also read: Oyo-parent Prism secures Sebi's nod to launch Rs 6,650-crore IPO
The IPO-bound company may also consider a pre-IPO placement worth up to Rs 1,330 crore before filing the Red Herring Prospectus (RHP). If undertaken, the amount raised through the pre-IPO placement round will be reduced from the fresh issue.
For the nine months ended December 31, 2025 (9M FY26), Oyo reported revenue from operations at Rs 6,941 crore, marking an 11% rise compared to the company’s full-year financial year 2025 revenue of Rs 6,259 crore. Its net profit for the period stood at Rs 748 crore.
The company said that it now operates 43 brands across more than 35 countries. As of December 31, 2025, its network comprised 24,303 hotels, 124,668 homes and 144,583 listings, including 14,937 storefronts in India. Since its inception in 2012, the company said it has served 119.36 million unique customers, with 68% of demand coming directly.
Also read: PRISM files IPO papers for Rs 6,650 crore fresh issue, reports Rs 748 crore profit in 9MFY26
Once primarily driven by the homegrown brand Oyo, the company now derives as much as 84% of its revenue from operations outside India. The US and Europe contributed about 27% and 24%, respectively, to the company's overall revenue from operations in 9M FY26. Its US business has now become one of the key drivers of scale after the acquisition of G6 Hospitality, which operates the Motel 6 and Studio 6 brands in the US and Canada.
In India, Prism said it has been expanding its company-serviced hotel business. Company-serviced hotel storefronts increased to 1,573 as of December 31, 2025, from 1,053 as of March 31, 2025.
S&P Global Ratings upgrade for Prism
S&P Global Ratings earlier this month revised IPO-bound OYO parent Prism's outlook to Positive (from Stable) while affirming its 'B' issuer credit rating on the company's senior secured term loan.
"The positive outlook reflects our expectation that Oravel's credit metrics will improve significantly over the next 12 months if the company maintains its good earnings momentum and improves its capital structure through an IPO," S&P Global Ratings said.
A successful IPO could also materially improve the company's capital structure, which is currently weighed down by debt-like instruments, it added. "Credit ratios could further strengthen if the company uses its IPO proceeds to pay down debt," the rating agency said.
Also read: S&P Global revises IPO-bound Oyo parent Prism's outlook to 'Positive'
