Prism Gets SEBI Nod as Oyo’s $780M IPO Comeback Gets Real

Prism, the parent company of Oyo, has received approval from the Securities and Exchange Board of India for its planned IPO.

The company aims to raise ₹6,650 crore ($780 million) through the public offering. The approval marks a major step in Oyo’s long-running effort to list on the stock market.

SEBI approval does not mean the shares will start trading immediately. It means Prism can move to the next stage of the IPO process. The company is expected to file updated documents in the coming weeks, giving investors more detail on its financials, risks, and growth plans.

The IPO is a test of Oyo’s turnaround story

Oyo is one of India’s best-known hospitality technology companies. It works with hotels and other accommodation providers, helping them manage bookings, pricing, branding, and online distribution. A public listing would give Prism more capital and stronger visibility as India’s travel market continues to grow.

The deal will also test investor interest in travel and hospitality platforms. In recent years, investors have become more focused on profits and cash flow, not just fast growth. That makes Prism’s turnaround story central to the IPO.

Prism is trying again with a stronger story

This is not Prism’s first IPO attempt. Oyo previously tried to go public in 2021 and again in 2023, but both plans were delayed or withdrawn. This time, the company is coming back with a more disciplined message: stronger earnings, tighter cost control, and a wider lodging portfolio.

Reports suggest Prism may target a valuation of around $7 billion to $8 billion. That is lower than Oyo’s 2021 peak, but still a major recovery from its weaker private-market valuation in 2024.

Motel 6 gives Prism a bigger US business

A key part of Prism’s new IPO story is its acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6. Oyo completed the $525 million deal from Blackstone Real Estate in December 2024. The purchase gave Prism a larger position in the US economy lodging market.

Motel 6 and Studio 6 are well-known brands for budget and extended-stay travelers. This helps Prism show that it is no longer only an India-focused hotel platform. It now has a larger international business and more exposure to franchised economy hotels.

Investors will now focus on the numbers

Prism has cleared the regulatory stage, but investor confidence is still the key test. The updated IPO filing will show whether the company’s profit growth is strong enough to support a public listing.

From shareholder approval to SEBI clearance

Prism’s IPO story has moved in clear stages. First, the company began its third listing attempt and asked shareholders to approve a ₹6,650 crore ($780 million) offering, along with a bonus share issue and a capital increase. Shareholders then approved the plan, giving Prism the internal clearance it needed to move forward. After that, Prism filed draft IPO papers with SEBI on December 31, 2025, targeting a $7 billion to $8 billion valuation. The latest SEBI approval now brings the company closer to a public listing, after two earlier IPO attempts were withdrawn.

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