OYO IPO Likely To Get Final SEBI Approval This Week, Issue Size Reduced To ₹6,500 Crore

Mumbai: OYO parent company PRISM is expected to receive final approval from market regulator SEBI this week for its proposed initial public offering (IPO), according to reports quoting people familiar with the matter.

The company has also reduced the IPO size to around Rs 6,500 crore from earlier estimates of nearly Rs 8,400 crore. The Ritesh Agarwal-led hospitality platform is aiming for a stock market listing during the second half of 2026.

IPO Plans Through Confidential Route

The development comes months after reports said PRISM had confidentially filed draft IPO papers with SEBI. Earlier, shareholders had approved plans to raise up to Rs 6,650 crore through a fresh issue of equity shares, depending on market conditions and regulatory approvals.

Sources earlier suggested that the proposed IPO could value the company between USD 7 billion and USD 8 billion.

The company initially appointed ICICI Securities, Axis Capital, Goldman Sachs, and Citibank as lead managers for the public issue and later added more investment banks to the syndicate.

What Is The Confidential Filing Route?

SEBI’s confidential pre-filing route allows companies to privately discuss draft documents with the regulator before making them public. This process gives companies flexibility on IPO timing and helps them understand investor interest before launching the issue.

Several new-age companies, including Meesho, Swiggy, and Tata Play, have also explored or used this route.

Expansion And Growth Strategy

OYO had first planned to launch its IPO in 2021 but later withdrew the proposal because of weak global market conditions after the Russia-Ukraine conflict.

Since then, the company has expanded its business in India and overseas. It has strengthened its premium hotel portfolio through brands such as SUNDAY Hotels and Palette.

The company also acquired G6 Hospitality, the operator of Motel 6 and Studio 6 in the US budget hotel segment.

Recently, Moody’s reaffirmed PRISM’s B2 corporate family rating with a stable outlook and projected that the company’s EBITDA could more than double in FY26 due to expansion and cost optimisation.