Oyo parent Prism gets Sebi nod for Rs 6,650 crore IPO

Mumbai: Prism, the parent company of Oyo, has secured markets regulator Sebi’s nod to go ahead with its IPO in what will be its third attempt at going public, said people aware of the matter. The company is seeking to raise up to Rs 6,650 crore through fresh issues of shares and is targeting a valuation of $7-$8 billion even as it is yet to decide on a listing timeline given the war-led market volatility. Prism, which had filed IPO papers through the confidential route in December plans to file updated draft papers by early July, they said. Prism declined to comment. “The company is currently evaluating market conditions and broader listing timelines,” sources said.

Softbank-backed Prism joins Zepto in the IPO queue. The quick commerce firm’s $1 billion listing could hit the bourses as early as July if markets are stable. Sources said the company is expected to file its updated DRHP in the coming days. The broader new-age IPO market, though remains subdued, as companies are delaying IPO timelines to escape the scourge of the war. Market uncertainty coupled with weak investor appetite tend to have a bearing on firms’ valuation targets. Walmart’s PhonePe and Flipkart, for instance, have paused their IPO processes. Four of the six new-age companies that hit bourses so far this year got listed below their issue prices.

Tepid markets and Prism’s push towards profitability delayed the company’s IPO plans initially started in 2021. Prism posted profits of Rs 216 crore in Q1FY26. It acquired US-based G6 Hospitality, the economy lodging franchisor, operator of Motel 6 and Studio 6, boosting its international footprint.

The development comes as Prism continues to strengthen its presence across its key markets, India, the US, and Europe and increased its focus on self operated hotels and growth of premium brands such as Sunday Hotels & Pallette Hotels. It also recently entered the vacation homes segment in India with its European brand DanCenter by opening villas for rent in Goa. In India, the firm has also increased its presence in religious destinations to capitalise on the growth in spiritual travel.
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