Prism, parent of OYO, targets November IPO to raise ₹6,650 crore

Prism, the parent company of the hospitality platform OYO, is preparing to launch an initial public offering (IPO) potentially in November. The company is currently in discussions with investors to gauge interest in the share sale. According to its updated draft red herring prospectus, Prism aims to raise up to ₹6,650 crore through a fresh issue of shares, with no offer for sale by existing shareholders. A significant portion of the proceeds, approximately ₹4,987.5 crore, is earmarked for its subsidiary, Oravel Stays Singapore Pte Ltd, to repay or prepay certain borrowings.

In conjunction with the IPO preparations, Moody's Ratings has revised Prism's outlook from ‘stable’ to ‘positive’ while reaffirming its B2 corporate family rating. The positive outlook is driven by expectations that OYO will maintain stronger earnings and free cash flow generation over the next 12-18 months, aiding in deleveraging. Moody's noted that OYO's EBITDA more than doubled in FY26 to ₹2,630 crore from ₹1,080 crore in FY25, and the company generated positive free cash flow for the first time in several years.