Mumbai: Global hospitality technology company PRISM (parent of OYO), has
filed its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the Securities
and Exchange Board of India (SEBI). The proposed IPO comprises a fresh issue of
shares of up to ₹6650 crore, with no offer for sale by existing shareholders.
The company may also consider a pre-IPO placement aggregating up to ₹1330 crore
prior to filing the Red Herring Prospectus (RHP) with the Registrar of
Companies. If undertaken, the amount raised through the pre-IPO placement will
be reduced from the fresh issue.
According to the UDRHP-I,
the company proposes to use ₹4987.5 crore from the net proceeds for repayment
or prepayment of borrowings. The balance will be used for general corporate
purposes. The shares are proposed to be listed on NSE and BSE. With the IPO
structured as an entirely fresh issue, marquee existing shareholders including
SoftBank’s SVF India Holdings, founder Ritesh Agarwal and RA Hospitality
Holdings, Microsoft, Airbnb, Khazanah, A1 Holdings., Star Virtue Investment,
Global Ivy Ventures, Lightspeed, Greenoaks Capital and Peak XV are not selling
shares through the proposed public issue.
In the papers filed,
PRISM describes itself as, a technology driven hospitality platform has scaled
into a global multi-brand platform across hotels, vacation homes, extended-stay
properties and listings. PRISM’s “India for the World” model is built around
using a common technology and operating layer across markets, while localising
customer-facing experiences and supply partnerships.
The filing shows PRISM
combining scale with improved profitability. For the nine months ended December
31, 2025 (9MFY26), the company reported revenue from operations of ₹6,941
crore, surpassing the company’s full-year FY25 revenue of ₹6259 crore by 11.0%.
PRISM reported a profit after tax of ₹748 crore for 9MFY26 compared with ₹245
crore in FY25.
EBITDA stood at ₹2127
crore for 9MFY26, compared with ₹953 crore in FY25. EBITDA excluding
exceptional items, share-based payment expense and other income stood at ₹1968
crore for 9MFY26, 80% higher than the full FY25 figure of ₹1095 crore, even
without annualising the nine-month period.
The company operates 43
brands across more than 35 countries. As of December 31, 2025, its network
comprised 24,303 hotels, 124,668 homes and 144,583 listings, including 14,937
storefronts in India. Since its inception in 2012, the company has served 119.36
million unique customers with ~68% direct demand. . In India, PRISM has been
expanding its company-serviced hotel business These are hotels where the
company has greater operational involvement through leasing or management
service arrangements, allowing it to have more control over service standards,
brand experience and customer delivery. India company-serviced hotel
storefronts increased to 1,573 as of December 31, 2025, from 1,053 as of March
31, 2025. India company-serviced hotel’s Gross Booking Value (GBV) stood at
₹1346.45 crore for 9MFY26 already about 65% higher than the full FY25 figure of
₹818.23 crore. Company-serviced hotels contributed 49.29% of PRISM’s India GBV.
The company has been expanding this model under brands such as Sunday, Palette,
Clubhouse, Townhouse & Townhouse Oak.
PRISM’s US business has
become one of the biggest drivers of scale after the acquisition of G6
Hospitality, which operates the Motel 6 and Studio 6 brands in the US and
Canada.
US business GBV stood at
₹12,022.51 crore for 9MFY26. This was about 155% higher than the full FY25 US
GBV of ₹4712.83 crore. The US contributed 52.39% of PRISM’s global GBV during
the nine-month period. The G6 acquisition gives PRISM a stronger presence in
the North American economy and extended-stay hotel segments, while also adding
a royalty and franchise-led revenue stream through the Motel 6 and Studio 6
brands.
PRISM has also built
scale in Europe through homes and listings. Its Europe homes & listings
increased to 269,251 as of December 31, 2025, from 208,901 as of March 31,
2025. The company’s European homes and listings business includes brands such
as Belvilla, DanCenter and CheckMyGuest.Despite this scale, the filing says
PRISM has captured less than 1% of the European homes market, giving
significant headroom in a large and fragmented market.
PRISM has built a sizable
direct customer engine across its apps, websites, corporate channels, travel
agent channels, call centres and walk-ins. For 9MFY26, 67.6% of stays came
through direct-to-consumer channels. Repeat demand stood at 61.8% during the
same period. PRISM’s loyalty ecosystem includes OYO Wizard and My6 app. As of
December 31, 2025, the company had 19.07 million OYO Wizard members and 7.4
million My6 members, taking the total loyalty member base to 26.4 million. In
India itself, OYO Wizard had 16.7 million members making it the largest loyalty
programme by number of subscribers among
those run by leading travel brands in India.
S&P Global Ratings
revised PRISM's outlook to Positive (from Stable) while affirming its 'B'
issuer credit rating, citing improving profitability, stronger cash generation,
and the transformative impact of the proposed IPO on the balance sheet. The agency
noted consistent operating momentum with EBITDA growing at a compound annual
rate exceeding 45% between FY24 and FY26, with margins expected to approach 30%
over the coming years as the company benefits from scale, operational
efficiencies, and premiumization of its offerings.
On June 4, the Delhi
bench of ITAT struck down a Rs 3,885 crore tax demand on PRISM, ruling that
share premium from compulsorily convertible preference shares issued to its
parent could not be taxed as income under the Angel Tax provision. The tribunal
found that the valuation was conducted by RBI-approved valuers using proper
methodology, and tax authorities lack jurisdiction to override registered
valuers' assessments. The ruling clears a material overhang for PRISM ahead of
its IPO and sets precedent for other startups similarly targeted by this
now-repealed provision.