Oyo Parent Prism Tries IPO Again… Third Time’s a Charm?

Oyo’s parent company, Prism, has called an Extraordinary General Meeting (EGM) for December 20 to seek shareholder approval for raising up to INR 6,650 crore ($744 million) through a new share issuance.

Shareholders will also vote on a 1:19 bonus share issue, which will grant one additional share for every 19 shares held, with a record date of December 5, as well as an increase in authorized capital to support the upcoming public offering.

Prism, formerly known as Oravel Stays, operates Oyo’s global hotel technology platform and is attempting to capitalize on India’s strong IPO momentum. This marks the company’s most significant move yet toward launching its long-awaited IPO, following two unsuccessful attempts in prior years.

• First attempt in 2021: The company filed a Draft Red Herring Prospectus (DRHP) for INR 8,430 crore (over $1 billion), targeting a valuation of $10 billion to $12 billion, but ultimately shelved the plan due to COVID-related financial losses and volatile markets.
• Second attempt in 2023: A confidential filing was later withdrawn after major investor SoftBank sharply cut its internal valuation of Oyo, prompting further delays amid global economic uncertainty.

Now, Prism is targeting a valuation in the range of $7 billion to $8 billion. A fresh DRHP is expected soon, supported by the group’s growing portfolio that spans budget hotels (Oyo), premium properties, and new hospitality verticals.

If successful, this IPO could become one of the largest travel-sector listings in India in recent years. Analysts also expect the bonus issue to improve liquidity in unlisted shares and create a cleaner corporate structure before the market debut.

Prism’s momentum has been reinforced by its September 2025 fundraising round, where it secured $5.6 million to expand its premium-hotel subsidiary, Sunday PropTech.

The company plans to open 40 new four- and five-star properties in 2026 across major cities, smaller towns, wildlife destinations, and pilgrimage routes, showcasing Prism’s strategy to move beyond its budget-hotel origins as it prepares for a public listing.