Oyo parent Prism nearly halves proposed IPO fresh issue to Rs 3,350 crore, filing shows

Prism, the SoftBank-backed parent of Oyo Hotels, has nearly halved its proposed initial public offering, a filing showed on Thursday, Reuters reports. The fresh issue will be worth 33.5 billion rupees ($354.65 million), down from the 66.5 billion rupees in the updated draft red herring prospectus filed in June.

Sources told PTI on Tuesday that the cut — to up to Rs 3,350 crore from almost Rs 6,650 crore — follows strong cash generation and an improving balance sheet, cutting the company’s funding needs, Business Standard reports. “The objective is to raise what the business needs while keeping the capital structure efficient,” a person familiar with the matter said, adding that the residual debt would be repaid over the next two to three years through cash flows generated by the business.

Most of the proceeds are proposed for repayment or prepayment of borrowings, and the offering includes no offer for sale: existing investors — including SoftBank’s SVF India Holdings, the largest shareholder at 40.04%, and founder Ritesh Agarwal at 30.52% — are not selling, Fortune India reports.

Prism first filed for an IPO in 2021 seeking a valuation of up to $12 billion, then repeatedly delayed it; a March 2023 confidential filing was followed by a third postponement in May, with debt financing in between. The parent was renamed Prism in September 2025.

Moody’s revised the outlook to ‘positive’ from ‘stable’, reaffirming its B2 rating. FY26 EBITDA more than doubled to Rs 2,630 crore from Rs 1,080 crore in FY25; FY25 revenue was Rs 6,325.9 crore, up 14%, with EBITDA of Rs 942.1 crore in a second straight profitable year. The listing is targeted for November, subject to market conditions. ($1 = Rs 94.46.)