OYO Parent Set To Receive Final SEBI Nod This Week; IPO Size Cut To Rs 6,500 Crore

Ritesh Agarwal-led hospitality platform OYO is likely to receive final approval from the Securities and Exchange Board of India this week for its proposed initial public offering, people familiar with the matter told NDTV Profit, as the company cuts the IPO size to around Rs 6,500 crore from earlier estimates of about Rs 8,400 crore.

The company is targeting a stock market listing in the second half of 2026, according to the sources.

The development comes months after NDTV Profit reported on Dec. 31 that PRISM, the parent company of the Gurugram-based hospitality technology platform, had confidentially filed draft offer documents with SEBI for an IPO.

Oyo did not immediately respond to a request for comment by NDTV Profit at the time of publishing this story.

Confidential Route

The filing followed shareholder approval to raise up to Rs 6,650 crore through a fresh issue of equity shares, subject to regulatory approvals and market conditions, at an extraordinary general meeting.

People familiar with the matter had earlier said the proposed public offering could value the company at $7 billion to $8 billion.

The company initially appointed ICICI Securities, Axis Capital, Goldman Sachs and Citibank as book-running lead managers for the IPO and later added more banks to the syndicate.

SEBI's confidential pre-filing mechanism allows companies to engage with the regulator and refine disclosures before making draft documents public. The route also gives issuers flexibility on timing and allows them to assess investor interest before launching the issue.

New-age companies including Meesho, Swiggy and Tata Play have used or explored the confidential filing route.

Expansion Push

PRISM first began the IPO process in 2021 and filed draft papers with SEBI before withdrawing the plans amid global market volatility and weaker investor sentiment following the Russia-Ukraine conflict.

Since then, the company has expanded in India and overseas while strengthening its premium portfolio through brands such as SUNDAY Hotels and Palette.

The company also acquired G6 Hospitality, the franchisor and operator of Motel 6 and Studio 6 in the US economy lodging segment.

Ahead of the proposed IPO, OYO issued a 1:1 bonus issue in September 2025, giving shareholders one additional equity share for each share held. The company also announced a 1:19 bonus issue in December.

Moody's recently reaffirmed PRISM's B2 corporate family rating with a stable outlook. The ratings agency expects the company's EBITDA to more than double to about $280 million, or around Rs 2,496 crore, in FY26, supported by earnings from the G6 Hospitality acquisition, expansion of premium storefronts and continued cost optimisation.