Prism, the parent company of the prominent travel technology firm Oyo, has received crucial approval from the Securities and Exchange Board of India (SEBI) for its proposed Initial Public Offering (IPO). This marks a significant step towards the company's long-anticipated debut on the public market, which has faced delays in previous attempts.
IPO Details and Valuation Targets
The company plans to raise up to ₹6,650 crore through a fresh issue of equity shares. Sources familiar with the development indicate that Prism is targeting a valuation of approximately $7-8 billion for the offering. This valuation ambition comes as the company focuses on strengthening its financial performance and operational efficiency.
Prism had initially filed its draft red herring prospectus (DRHP) confidentially with SEBI in December 2025, utilizing the regulator's pre-filing route. This move followed shareholder approval of the fundraising proposal at an Extraordinary General Meeting (EGM) held on December 20, 2025. The next phase involves filing an Updated Draft Red Herring Prospectus (UDRHP-1) in early July, which will be made public and open for comments for 21 days.
Oyo's Path to Public Markets
This regulatory clearance represents a major breakthrough for Oyo founder Ritesh Agarwal. The company has previously attempted to go public multiple times, but challenging market conditions and volatility in technology stocks led to deferrals. This time, Prism is approaching the market with a renewed emphasis on profitability and streamlined operations.
Over the past year, Prism has expanded its footprint across key international markets, including India, the United States, and Europe, while simultaneously elevating its focus on premium hospitality offerings. The company has enhanced brands like Sunday Hotels and Palette Hotels and grown its portfolio of self-operated hotels. Furthermore, Prism has diversified its business through its European vacation rental brand, DanCenter, which recently launched villa offerings in Goa, India. The company is also tapping into the growing demand for spiritual travel by expanding its presence in religious tourism destinations.
Financial Outlook and Governance
Prism's listing aspirations are bolstered by improving financial metrics. Credit rating agency Moody's recently reaffirmed Prism's B2 corporate family rating with a stable outlook. Moody's projects the company's EBITDA to more than double, reaching approximately $280 million (around ₹2,496 crore) in FY26. This growth is expected to be driven by contributions from the G6 Hospitality acquisition, expansion in premium hotel offerings, and ongoing cost optimization initiatives.
In a move to strengthen its corporate governance framework, Prism has appointed former SEBI Chairman Ajay Tyagi as an independent director, signaling a commitment to robust oversight.
Broader Market Context for Tech IPOs
If completed, the Prism IPO would be one of the largest listings by a new-age technology company in India. This proposed offering emerges at a time when several internet and technology firms are re-evaluating their listing timelines amidst market volatility. While some companies, such as Flipkart and PhonePe, have reportedly postponed their IPO plans, others like Manipal Health and SBI Funds Management are moving forward with their public market ambitions. Investors are also keenly observing potential listings from Zepto, the National Stock Exchange, and Reliance Jio.
For Oyo, SEBI's approval marks a pivotal moment, paving the way for a public listing and offering investors an opportunity to participate in the company's next phase of growth.