Prism files Rs 6,650 cr fresh‑issue IPO targeting $7‑8 bn valuation

Prism, the parent company of OYO, has submitted an Updated Draft Red Herring Prospectus (UDRHP) to SEBI for an initial public offering of up to Rs 6,650 crore. The issue will be entirely a fresh issue of new shares, with no offer‑for‑sale component, meaning existing investors such as SoftBank, founder Ritesh Agarwal, Microsoft, Airbnb and others will retain their stakes. The company may also conduct a pre‑IPO placement of up to Rs 1,330 crore, which would be deducted from the final issue size.

Proceeds are earmarked mainly for debt repayment, with Rs 4,987.5 crore slated for clearing borrowings and the remainder for general corporate purposes. Prism aims for a post‑listing valuation of roughly $7‑8 billion. Financials show strong momentum: for the first nine months of FY26, revenue rose to Rs 6,941 crore and net profit surged to Rs 748 crore, up from Rs 245 crore a year earlier.

Overseas operations now generate about 84 % of total revenue, driven by the U.S. business (27 % of revenue) following the acquisition of G6 Hospitality, which operates Motel 6 and Studio 6 brands. Europe contributes another 24 % of revenue. The filing also flags legal risk from a long‑running dispute with Zostel, which could force Prism to transfer up to 7 % of its shareholding if the outcome is unfavorable. The IPO will be listed on India’s NSE and BSE, and S&P Global has upgraded Prism’s outlook to positive.