Hospitality major PRISM, the parent entity of OYO, has received SEBI approval for its proposed IPO, sources told Inc42.
The development comes nearly six months after the company confidentially filed its DRHP in December 2025.
Ahead of filing, PRISM's shareholders approved its plan to raise up to ₹6,650 Cr through a fresh issue of equity shares at an extraordinary general meeting held on December 20, 2025.
The sources said the proposed public issue could value the company between $7 Bn and $8 Bn. Following SEBI's nod, the company is expected to file its updated DRHP in early July.
The company, which rebranded from OYO to PRISM last year, has been repositioning itself as a global hospitality platform with businesses spanning hotels, resorts, vacation rentals and coworking spaces.
Its portfolio includes brands such as OYO, Motel 6, Studio 6, Sunday Hotels, Palette Hotels, DanCenter and Innov8.
The IPO approval comes as PRISM continues to expand its international operations. According to the company’s FY25 disclosures, India contributed about 30% of its overall revenue, while the US emerged as another key market following the acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6, in a $525 Mn deal last year.
The acquisition is expected to contribute approximately ₹630 Cr in EBITDA in FY26 and add around $1.7 Bn in gross booking value to the combined entity. Last year, PRISM also announced plans to invest $10 Mn in strengthening G6 Hospitality’s digital platforms and expanding its footprint across the US.
Alongside its international expansion, PRISM has increased its focus on premium hospitality offerings. The company has been expanding brands such as Sunday Hotels, Palette Hotels and Townhouse, while also growing its presence in pilgrimage destinations across India to tap rising demand for religious travel.
The hospitality major's net profit rose 7% to ₹244.8 Cr in FY25 from ₹229.6 Cr in the previous year. Meanwhile, its revenue increased 16% YoY to ₹6,252.8 Cr.
However, the company continues to carry a sizeable debt burden, with liabilities exceeding ₹7,000 Cr, as per its FY25 annual report.
As part of its preparations for a public market debut, PRISM has also made changes to its governance structure. Earlier this year, it appointed former SEBI chairman Ajay Tyagi as an independent director on its board.
Last month, global ratings agency Moody’s reaffirmed PRISM’s B2 corporate family rating with a stable outlook. The agency said it expects the company’s EBITDA to more than double to about $280 Mn in FY26, driven by contributions from the G6 Hospitality acquisition, expansion of premium offerings and ongoing cost optimisation efforts.
The company, which is backed by the likes of SoftBank Group, Lightspeed Venture Partners, Peak XV Partners, and Microsoft, is reportedly targeting a net profit of ₹800 Cr to ₹1,000 Cr in FY26 as it looks to strengthen its financial profile ahead of the public listing.