Prism, the parent firm of global travel tech unicorn Oyo, has received the approval of the markets regulator Sebi to raise Rs 6,650 crore through its initial public offering (IPO), people familiar with the development said on Tuesday, as reported by news agency PTI. The people further said the proposed public offering is expected to value the company at USD 7-8 billion.
Earlier in December-end 2025, OYO's parent entity PRISM filed the draft red herring prospectus with Sebi using the confidential route.
After filing the draft paperrs, the company, founded by Ritesh Agarwal in 2012, secured shareholders' nod at an Extraordinary General Meeting (EGM) held on December 20, 2025, where the company received consent to raise up to Rs 6,650 crore through a fresh issue of equity shares.
As the next step, the company will now file a public Updated Draft Red Herring Prospectus (UDRHP-1) which will be open for public comments for 21 days. People familiar with the development said the company is planning to file this by early July.
They said that Prism is currently evaluating market conditions and broader listing timelines while preparing to file its UDRHP-1.
The development comes as Prism continues to strengthen its footprints across its key markets, inlcuding India, the US, and Europe, and amplifies its focus on self-operated hotels and the growth of premium brands such as Sunday Hotels & Pallette Hotels. Also, it recently entered the vacation homes segment in India with its European brand DanCenter by opening villas for rent in Goa.
In India, Prism has also increased its presence in religious destinations to capitalize on the growth in spiritual travel. The company has appointed Axis Capital, Citibank, Goldman Sachs, ICICI Securities, SBI Caps, JM Financials, InCred Capital and Intensive Fiscal Services as the book-running lead managers for the IPO.
Oyo was founded by Ritesh Agarwal in 2012, who is Prism Group CEO. SoftBank remains one of its largest shareholders.
The company had previously attempted to go public. The hotel aggregator first filed for an IPO in 2021 to raise Rs 8,430 crore, submitting offer documents to Sebi targeting a USD 12 billion valuation. This was followed by a subsequent filing in 2023 that incorporated updated financial and operational disclosures.
However, the company later withdrew its IPO plans amid heightened global market volatility, which weighed on investor sentiment.
Earlier in February this year, PRISM announced the appointment of former SEBI Chairman Ajay Tyagi as an Independent Director on its Board. His appointment came as PRISM aimed to further strengthen its board and governance framework as it strives to grow and access the public markets.
"Tyagi joins an experienced board with expertise across governance, consumer businesses, technology and strategic investments," OYO said in a statement.
The board comprises Independent Directors, including William Steve Albrecht, the Dr Jay H Price/Arthur Andersen Endowed Professor of Accountancy at Utah State University; Troy Matthew Alstead, former CFO and group president of Starbucks Corporation; Deepa Malik, Padma Shri awardee; Bejul Somaia, partner at Lightspeed Venture Partners; Sumer Juneja, Non-Executive Nominee Director and Managing Partner at Softbank Investment Advisers; and Aditya Ghosh, Non-Executive Nominee Director and Co-Founder of Akasa Air.
Tyagi's extensive experience in capital markets, corporate governance, and regulatory affairs is expected to strengthen Prism's board as the company prepares to launch its IPO.
(With inputs from PTI)
Read more news like this on www.etnownews.com