Oyo Parent Prism Secures SEBI Approval for ₹6,650 Crore IPO, Eyes Strong Market Comeback

Prism, the parent company of hospitality giant Oyo, has received regulatory approval from SEBI to proceed with its much-anticipated initial public offering (IPO). The move marks a significant milestone for the company as it prepares to re-enter public markets with renewed strategy, stronger governance, and a sharper focus on premium offerings.

SEBI Approval Paves Way for Prism’s IPO Plans

Prism, the holding company of global travel technology platform Oyo, has secured approval from the Securities and Exchange Board of India (SEBI) to raise approximately ₹6,650 crore through an initial public offering. According to sources familiar with the matter, the proposed IPO is expected to value the company between $7 billion and $8 billion.

The approval follows the company’s confidential filing submitted in December 2025, a route increasingly adopted by firms seeking flexibility in the IPO process. The filing came after shareholders granted approval during an Extraordinary General Meeting (EGM) held on December 20, 2025.

This development signals a renewed push by Prism to tap into capital markets after previous attempts were delayed due to market uncertainties.

Next Step: Filing of Updated Draft Prospectus

With SEBI’s nod in place, Prism is preparing to move ahead with the next critical stage of the IPO process. The company is expected to file its Updated Draft Red Herring Prospectus (UDRHP-1) by early July.

Once filed, the document will be open for public comments for a period of 21 days, allowing investors and stakeholders to review the company’s financials, business model, and risk factors. This step is essential in ensuring transparency and building investor confidence ahead of the public offering.

Prism is also closely monitoring market conditions to determine the optimal timing for the IPO. The final listing timeline will depend on broader economic factors, investor sentiment, and market stability.

Strategic Focus on Premium and Global Expansion

The IPO plans come at a time when Prism is actively strengthening its position across key global markets, including India, the United States, and Europe. The company is focusing on expanding its footprint while improving the quality and diversity of its offerings.

A major part of this strategy involves the development of premium hospitality brands such as Sunday Hotels and Palette Hotels. These brands aim to cater to evolving consumer preferences, particularly among travellers seeking higher-quality accommodations and curated experiences.

In addition, Prism has ventured into the vacation rental segment in India by launching villa rentals in Goa under its European brand Dancenter. This move reflects the company’s effort to diversify its portfolio and tap into the growing demand for alternative accommodation options.

Oyo’s Journey: From Startup to Global Unicorn

Founded in 2012 by entrepreneur Ritesh Agarwal, Oyo has grown from a small startup into one of the world’s leading hospitality platforms. The company connects hotels, homes, and other accommodations to a technology-driven platform, enabling standardised services and wider market reach.

Over the years, Oyo has expanded its operations across multiple countries, building a strong presence in both emerging and developed markets. Prism, as the parent entity, oversees these global operations and drives the company’s strategic direction.

SoftBank remains one of the largest investors in the company, highlighting continued institutional confidence in Oyo’s long-term growth potential.

Previous IPO Attempts and Market Challenges

Prism’s current IPO plans mark its third major attempt to go public. The company initially filed for an IPO in 2021, aiming to raise ₹8,430 crore at a valuation of around $12 billion. However, shifting market dynamics and investor concerns led to delays.

A subsequent attempt in 2023 included updated financial disclosures and operational metrics. Despite these efforts, global market volatility and uncertain economic conditions affected investor sentiment, prompting the company to withdraw its plans.

The current IPO initiative reflects a more cautious and strategic approach, with Prism taking into account past challenges and aligning its plans with improved market conditions.

Strengthening Governance with Ajay Tyagi’s Appointment

In preparation for its public listing, Prism has taken steps to enhance its corporate governance framework. The company recently appointed Ajay Tyagi, former Chairman of SEBI, as an independent director on its board.

Tyagi brings extensive experience in capital markets, regulatory compliance, and corporate governance. His presence on the board is expected to provide valuable insights and strengthen investor confidence as the company moves toward its IPO.

Strong governance practices are a critical factor for companies entering public markets, and Prism’s decision to onboard a seasoned regulatory expert underscores its commitment to transparency and accountability.

Outlook: A Renewed Push Toward Public Markets

Prism’s IPO is expected to be one of the most closely watched public offerings in India’s startup ecosystem. With a targeted fundraising of ₹6,650 crore and a valuation in the range of $7–8 billion, the company aims to position itself as a key player in the hospitality and travel technology space.

The funds raised from the IPO are likely to be used for business expansion, strengthening technology infrastructure, and reducing debt. Additionally, the listing could provide existing investors with an opportunity to partially exit while attracting new institutional and retail investors.

As the company prepares to file its updated prospectus and finalise listing plans, market participants will be closely watching its performance, strategy, and growth trajectory.

Conclusion: A Critical Milestone for Prism and Oyo

The SEBI approval marks a significant step forward for Prism as it seeks to re-enter the public market with a refined strategy and stronger fundamentals. With a focus on premium offerings, global expansion, and improved governance, the company appears better positioned to navigate the challenges of the IPO landscape.

If successful, the listing could not only boost Prism’s growth ambitions but also signal renewed investor confidence in India’s startup ecosystem and hospitality sector.