PRISM, the parent company of hospitality platform OYO, is planning to nearly halve the size of its proposed initial public offering (IPO), reducing the fresh issue from ₹6,650 crore to up to ₹3,350 crore.
The revised plan comes as the company reports stronger cash generation and an improved balance sheet, reducing the amount of new capital it needs to raise. The development marks another step in OYO’s long-delayed efforts to enter the public markets.
Why Is PRISM Reducing Its IPO Size?
The original IPO proposal was prepared before the company’s more recent financial performance became clear. With cash generation improving and its balance sheet strengthening, PRISM now expects to raise less money through the fresh issue.
People familiar with the development said the company wants to raise the capital required by the business while maintaining an efficient capital structure.
PRISM had previously planned to raise up to ₹6,650 crore through a fresh issue of shares. Around ₹5,000 crore of the original proposed proceeds was intended for debt repayment.
Under the revised plan, most of the funds raised will continue to be directed towards repaying or prepaying some of the company’s outstanding borrowings.
The company also plans to repay its remaining debt over the next two to three years using cash generated by its operations.
Stronger Financial Performance Supports The Move
PRISM’s improved financial position comes amid stronger operating performance at OYO.
For FY26, OYO’s EBITDA more than doubled to ₹2,630 crore, compared with ₹1,080 crore in FY25.
EBITDA, or earnings before interest, taxes, depreciation and amortisation, is a measure commonly used to assess a company’s operating performance.
Moody’s Ratings has also revised PRISM’s outlook from stable to positive while reaffirming its B2 corporate family rating. The agency expects OYO’s EBITDA to reach approximately ₹3,000 crore over the next 12–18 months as the business continues to scale and expand its platform.
The improved outlook and financial performance provide context for the decision to reduce the planned fresh issue. However, the IPO’s final size and terms will depend on the company’s updated offer documents and subsequent regulatory process.
OYO’s Long Road To The Stock Market
OYO first pursued an IPO in 2021, when it sought a valuation of up to $12 billion. Its listing plans faced repeated delays, and the company revived the process through a confidential filing in March 2023 before postponing the offering again.
During the intervening years, OYO turned to debt financing while continuing to develop its hospitality platform.
In June 2026, PRISM filed updated draft IPO papers proposing a fresh issue of up to ₹6,650 crore. The latest reduction would bring the proposed amount down to ₹3,350 crore, approximately half the earlier figure.
The offering is being planned as a fresh issue of shares, meaning the proceeds raised through it would go to the company rather than to existing shareholders selling their stakes.
What Happens Next?
The proposed IPO remains an important milestone for PRISM as it works towards a public listing and continues to focus on reducing debt.
A smaller issue could allow the company to raise capital more closely aligned with its current funding needs. At the same time, its ability to sustain cash generation, improve profitability and manage borrowings will remain important considerations for investors.
OYO was founded in 2013 by Ritesh Agarwal. He currently holds a 30.52% stake in PRISM, while SoftBank subsidiary SVF India Holdings holds 40.04%, making it the company’s largest shareholder.
The revised fundraising plan signals a shift in OYO’s IPO strategy, with the company looking to balance its public-market ambitions against its improving financial position.
