PRISM Gains SEBI Approval for IPO

PRISM, the parent entity of the hospitality technology company OYO, has obtained approval from the Securities and Exchange Board of India (SEBI) for its planned initial public offering (IPO), as informed by knowledgeable sources. The organisation had submitted its draft red herring prospectus (DRHP) confidentially to the market regulator in December 2025 to advance its public listing strategy.

Details of the IPO Plan

This filing followed the endorsement from shareholders during an extraordinary general meeting on December 20, 2025, where the stakeholders supported a proposal to accumulate as much as Rs 6,650 crore through a fresh equity share issue. Sources indicate that the prospective offering could assign the company a valuation between $7 billion to $8 billion.

Management and Next Steps

PRISM has enlisted Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, SBI Capital Markets, JM Financial, InCred Capital, and Intensive Fiscal Services as the book-running lead managers for the impending issue. Following this approval, the business is anticipated to submit an Updated Draft Red Herring Prospectus (UDRHP-1), which will be available for public feedback for 21 days. Sources mentioned that the company is currently assessing market conditions and potential timelines for the public listing before moving on with the next phase.

Expansion Plans and Recent Developments

This advancement occurs as PRISM grows its influence throughout India, the US, and Europe. In the past year, the organisation has heightened its emphasis on self-operated hotels and high-end hospitality brands, including Sunday Hotels and Pallette Hotels. Furthermore, PRISM has ventured into India’s vacation rental market via DanCenter and has broadened its footprint in religious tourism destinations.

Leadership Changes and Ratings

Last month, PRISM appointed Ajay Tyagi, the former SEBI chairman, as an independent director. Additionally, in November 2025, Moody’s Ratings reaffirmed PRISM’s B2 corporate family rating while maintaining a stable outlook for the company. At that time, the ratings agency anticipated that the company’s EBITDA would reach approximately $280 million (around Rs 2,496 crore) for FY26, fueled by expected gains from the G6 Hospitality acquisition, the growth of premium storefronts, and operational efficiencies.

PRISM made its first attempt at a public offering in 2021; however, it had to pause the initiative due to fluctuating market conditions. The confidential submission in December represents the company’s latest endeavor to engage with public markets.