Listing Moves Closer: OYO Parent PRISM Gets SEBI Nod For A  ₹6,650 Crore IPO

​Table of Contents

• OYO IPO Receives SEBI Approval
• What Is OYO’s Confidential IPO Filing?
• Key Details of the Proposed OYO IPO
• Why OYO’s IPO Matters for Investors
• Profitability and Business Transformation
• Growth Strategy and Industry Position
• Conclusion
• FAQs
• Sources

After a long wait, with OYO’s two prior attempts to issue an IPO being withdrawn, the OYO IPO is progressing. In the first week of June 2026, Prism, which is the parent company of OYO, received the green light to go ahead with an initial public offering by the Securities and Exchange Board of India (SEBI). The proposed issue is planning to raise at most ₹6,650 crores [1]. Some sources claim an estimation of $7-8 billion for the valuation [2]. OYO has not verified this number. The development is a significant catalyst for investors who are monitoring OYO unlisted share price in anticipation of the listing. The SEBI nod clears the path for the public listing, a highly awaited public listing in India’s IPO market for fiscal year 2026 – 2027.

OYO IPO Gets Green Light from SEBI

Between June 1 and June 5, 2026 [3], SEBI issued its formal observation letters to Prism’s draft IPO papers. In the case of India’s regulatory structure, a SEBI observation letter is functionally the clearance, or the mandated approval that allows a company to establish a price band, conduct book building, and go ahead with the listing. The approval concludes the process that began in 2021 when Prism made an IPO application with a target of a valuation of $12 billion. Those plans were canceled due to the volatility of the markets, and the company has returned in 2026 with a more conservative approach in terms of valuation with significantly better financials. Prism’s governance improvements include the positive market development of appointing former SEBI chairman Ajay Tyagi as an independent director on Prism’s Board in May 2026, shortly before SEBI’s approval.

What Is OYO’s Confidential IPO Filing?

The confidential pre-filing system means that companies can submit the Draft Red Herring Prospectus (DRHP) to SEBI with a review and they do not have to submit the documentation publicly at the same time and thus do not have to submit financial or other sensitive information early. Prism filed its confidential DRHP in late December 2025, shortly after the company’s extraordinary general meeting held on December 20, 2025, where the shareholders voted to approve the administration of the fundraiser. With SEBI’s comments provided, the next step for Prism is to submit its Updated Draft Red Herring Prospectus (UDRHP-1), which will be open to a 21-day public comment period. Prism plans to submit the UDRHP-1 in early July 2026, with an IPO planned for FY 2026–27.

Key OYO IPO Proposal Insights

Parameter	Details	Source
Company	Prism (parent of OYO / Oravel Stays)	—
IPO Size	Up to ₹6,650 crore	Business Standard [1]
Structure	Fresh Issue	IPO Central [8]
Reported Valuation	US$7–8 billion (media estimate; unconfirmed)	Reuters [2]
Confidential DRHP Filed	Late December 2025 / January 1, 2026	Business Standard [6]
SEBI Approval Date	June 1–5, 2026	Business Outreach [3]
UDRHP-1 Expected	Early July 2026	India TV News [7]
Lead Managers	Axis Capital (Coordinating), Citibank, Goldman Sachs, ICICI Securities, SBI Capital Markets, JM Financial, InCred Capital, Intensive Fiscal Services	Business Outreach [9]
Previous IPO Attempt	Filed in 2021 at up to US$12 billion valuation; withdrawn in 2022	Outlook Business [4]

Eyes on FY25 Financials

​Two distinct reports will present FY25 financials:

In the Audited FY25 Annual Report, Profits = ₹244.8 crore (up 7% from FY24 Profits = ₹229.6 crore), Revenues = ₹6,252.8 crore (up 16% YoY). Oyo reported a consolidated net profit of ₹244.8 crore in FY25, helped by 767.5 crore in deferred tax credit and exceptional gains. Stripped of these, the company booked a pre-tax loss of 489.3 crore, according to the report. In the Unaudited (internal town hall, May 2025), a reporting by PTI and Business Standard [11] states that Profits increased by 172% YoY (equal to ₹623 crore), with Ritesh Agarwal, the Founder, citing the newly presented profit figure as a result of exceptional items. The UDRHP-1 will present the final and fully audited figures. Please rely on the UDRHP-1 and present your valuations accordingly.

Why OYO’s IPO Matters for Investors

As losses were driving OYO’s valuation, the business model was undergoing an extraordinary metamorphosis. By 2026, OYO will be a profit-making enterprise with a valuation worthy of the improved offering. According to audited statements, Prism achieved profitable status for 12 consecutive quarters, reporting revenue of ₹6,252.8 crore in FY25 (an increase of 16% YoY) and net profit of ₹244.8 crore (up by 7% from ₹229.6 crore in FY24) [10]. EBITDA reported was ₹1,083.5 crore, up 22% from FY24’s ₹887.8 crore [13]. Since Prism’s IPO is a company’s fresh issue, there is no secondary opportunity for it. This is a positive sign of long term business growth and leads to greater confidence from participating institutional investors, owing to the directors’ confidence about future business growth [5]. For entities interested in Unlisted shares India, OYO’s Pre IPO offer price is a clear indicator of how OYO’s listing is perceived in the market. This makes the recent SEBI clearance an important market development.

Growth Strategy and Industry Position

According to the FY25 Prism Annual Report, apart from being present in over 35 countries, Prism’s global reach as of March 31, 2025, was 21,000 hotels and 120,000 homes [14]. Prism’s offerings cover over 100 million customers [15]. Prism’s brand portfolio includes OYO, Townhouse, Sunday Hotels, Motel 6, and Studio 6. The last three brands were USD 525 million (approx. ₹4,403 crore) acquisition of G6 Hospitality by Blackstone Real Estate from their Sponsored US Hotel Portfolio [16]. The planned acquisitions are intended to aid Prism’s expansion into strategically lucrative hospitality markets. [17]

Conclusion

​OYO in 2026 has cleared major roadblocks for the company to go public. Prism is expected to list in 2026–27, and will be the focus of the most significant tech listing in 2026, having received formal approval from SEBI and the UDRHP-1 scheduled to be filed in July. The 2021 OYO case did not have improving profitability trends or a global hospitality footprint spanning over 35 countries. This, along with a more realistic valuation, shows this case is materially different from the 2021 attempt. The costs of this case are persistent debt, exceptional-item-driven FY25 profits, and industry risks. This case deserves your due diligence. For the latest news about the OYO IPO, future listings, and pre-IPO price changes, visit DelistedStocks, a reputable Indian unlisted and upcoming IPO companies stock research site.

FAQ’s

Sources:

1.) Business Standard OYO parent Prism gets SEBI nod for ₹6,650 crore IPOhttps://www.business-standard.com/markets/ipo/oyo-parent-prism-gets-sebi-nod-for-6-650-crore-ipo-eyes-next-filing-126060201378_1.html

2) Reuters via Market Screener: SoftBank-backed OYO Hotels parent makes confidential IPO filinghttps://www.marketscreener.com/news/softbank-backed-oyo-hotels-parent-makes-confidential-ipo-filing-sources-say-ce7e59d8de8df022

3) Business Outreach OYO parent Prism receives SEBI clearance for ₹6,650 crore IPO https ://www.businessoutreach.in/oyo-ipo-2026-sebi-approval-6650-crore-public-issue/

4) Outlook Business OYO parent PRISM secures SEBI approval; valuation pegged at $7–8 Bnhttps://www.outlookbusiness.com/news/oyo-parent-prism-secures-sebi-approval-for-ipo-valuation-pegged-at-7-8-bn

5) India Infoline OYO IPO gets SEBI approval — key investor takeawayshttps://www.indiainfoline.com/news/ipo/oyo-ipo-gets-sebi-approval-key-investor-takeaways-on-the-6650-crore-public-issue

6) India TV News OYO parent Prism to launch ₹6,650 crore IPO, gets SEBI nodhttps://www.indiatvnews.com/business/news/oyo-parent-prism-to-launch-rs-6650-crore-ipo-gets-sebis-nod-check-details-2026-06-03-1043506

7) IPO Central5 new IPOs coming soon — SEBI clears OYO, Advanta, and three othershttps://ipocentral.in/latest-ipo-approvals-5-june-2026/

8) Medianama India made up 20% of OYO FY25 revenue as it rebrands https ://www.medianama.com/2025/09/223-india-20-oyo-fy25-revenue-rebrands/

9) PTI via Business Standard OYO most profitable startup in FY25 with ₹623 crore profit: Ritesh Agarwalhttps://www.business-standard.com/companies/news/oyo-posts-pat-of-623-cr-in-fy25-becomes-top-startup-ritesh-agarwal-125050800869_1.html

10) Asian Hospitality / Prism FY25 Annual ReportPRISM logs $27M profit in FY25https://www.asianhospitality.com/prism-logs-27m-profit-fy25/

11) Business Standard OYO parent Oravel Stays rebrands to Prismhttps://www.business-standard.com/companies/news/oyo-hotels-parent-oravel-stays-rebrands-prism-global-expansion-125090700346_1.html

12) Hotel Dive OYO parent company rebrands to Prism; G6 Hospitality acquisition detailshttps://www.hoteldive.com/news/oyo-parent-company-oravel-stays-rebrands-to-prism/759696/

13) Deccan Chronicle SEBI nod to OYO’s confidential IPO filing; four more IPOs aiming to raise ₹15,000 crorehttps://www.deccanchronicle.com/business/sebi-nod-to-oyos-confidential-ipo-filing-four-more-ipos-aiming-to-raise-rs-15000-crore-1961705

14) Outlook Business SEBI gives green light to Warburg Pincus-backed Truhome Finance’s ₹3,000 crore IPOhttps://www.outlookbusiness.com/corporate/sebi-gives-green-light-to-warburg-pincus-backed-truhome-finances-3000-cr-ipo

15) TechStory SEBI clears five IPOs in one week — OYO parent Prism, Truhome Finance, and three othershttps://techstory.in/sebi-clears-five-ipos-in-one-week-including-oyo-parent-prism-truhome-finance-and-three-others-in-%E2%82%B910000-crore-plus-pipeline/

16) Free Press JournalOYO parent Prism eyes ₹6,650 crore IPO; SEBI clears 5 companieshttps://www.freepressjournal.in/business/oyo-parent-prism-eyes-6650-crore-ipo-sebi-clears-5-companies-planning-to-raise-nearly-1000

Disclaimer

This article is for informational purposes only and should not be considered investment advice. Prices and data of unlisted shares are based on publicly available sources and may vary. Investors are advised to conduct independent research or consult financial professionals before making investment decisions.