PRISM, the Parent Company of OYO, Intends to Cut Its IPO Fresh Issue in Half to Rs 3,350 Crore

PRISM, the parent company of hospitality brand OYO, is considering reducing the fresh issue component of its proposed initial public offering (IPO) to up to Rs 3,350 crore, nearly half the Rs 6,650 crore it had planned to raise earlier.

According to people familiar with the development, the decision follows stronger cash generation and an improvement in the company's financial position. These developments have reduced the amount of additional capital PRISM needs to raise through the public issue.

Focus Shifts to Debt Reduction

The original IPO plan was prepared before the company’s more recent financial performance became clear. With cash flows strengthening and its balance sheet improving, PRISM now expects to meet its funding requirements with a smaller fresh issue.

A person familiar with the matter said the company wants to raise only the capital its business requires while maintaining an efficient capital structure. PRISM also intends to repay its remaining debt over the next two to three years using cash generated from operations.

Under the earlier IPO proposal, the company planned to raise up to Rs 6,650 crore through the fresh issue, with approximately Rs 5,000 crore earmarked for debt repayment.

A significant amount of the proceeds are still anticipated to be used to either fully or partially repay certain of the company's borrowings under the updated plan.

The proposed reduction comes as PRISM advances towards the next stage of its IPO process after filing its updated draft offer documents.

Improved Financial Performance Supports IPO Plans

The company’s recent financial performance has strengthened its position ahead of the proposed listing. For FY26, PRISM reported an EBITDA of Rs 2,630 crore, more than double the Rs 1,080 crore recorded in FY25.

Moody's Ratings has also revised its outlook on PRISM to 'positive' from 'stable', while reaffirming the company's B2 corporate family rating.

The ratings agency expects OYO's EBITDA to reach around Rs 3,000 crore over the next 12 to 18 months as the business expands and adds more storefronts to its platform.

Ritesh Agarwal and SoftBank Among Major Shareholders

Ritesh Agarwal launched OYO in 2013 and presently holds a 30.52% share in the business.

SoftBank Group's subsidiary, SVF India Holdings (Cayman) Ltd, is PRISM's largest shareholder, with a 40.04% stake.

The proposed IPO is part of the company's broader effort to strengthen its balance sheet and reduce debt while building on improvements in operating performance and cash generation.