PRISM Files Confidential Draft IPO Papers with SEBI

PRISM, the parent company of OYO, has submitted confidential draft IPO documents to the Securities and Exchange Board of India, according to informed sources. This submission follows the approval from shareholders during an Extraordinary General Meeting conducted on December 20, where the company was sanctioned to raise up to Rs 6,650 crore through a new equity share issuance.

Valuation of the Proposed Offering

The anticipated IPO is projected to value the organisation between $7 billion and $8 billion, based on insights from individuals familiar with the situation. Initially, PRISM appointed ICICI Securities, Axis Capital, Goldman Sachs, and Citibank as the lead managers for the IPO, subsequently bringing more banks into the advisory group.

History of the IPO Process

PRISM first began the IPO journey in 2021, filing initial documents with SEBI, followed by a revised submission incorporating updated financial data and operational insights. However, the company decided to withdraw its IPO ambitions due to heightened volatility in global markets.

Expansion and Growth Strategy

Since the withdrawal, PRISM has broadened its operations, both in India and internationally, and has enriched its premium brand collection by incorporating SUNDAY Hotels and Palette. Furthermore, the company has solidified its international footprint through the acquisition of the US-based G6 Hospitality, which operates budget-friendly establishments like Motel 6 and Studio 6.

Financial Performance

For the quarter ending June 2025 (Q1 FY26), PRISM reported a net profit exceeding Rs 200 crore alongside a revenue figure of Rs 2,019 crore.

The Rise of Confidential Filing

The utilisation of the confidential filing process is becoming increasingly popular among new-age businesses. Notable firms that have either leveraged or contemplated this approach include PhonePe, Meesho, Swiggy, Groww, PhysicsWallah, Shadowfax, Shiprocket, boAt, Aequs, Infra.Market, InCred Holdings, Zepto, and Tata Play.