Synopsis: OYO’s parent company, PRISM, has postponed its IPO multiple times since 2021. In this article, we explore the reasons behind the delay by unpacking the Valuation and Shareholder Challenges.
The budget hotel aggregator OYO’s parent firm, PRISM, initially filed for an IPO in 2021, aiming for a valuation of up to $12 billion. It briefly revisited its listing plans in March 2023 with a confidential filing to the market regulator, but in May, it postponed the IPO for the third time, choosing instead to raise debt in recent years.
OYO’s parent company, PRISM, has now received shareholders’ approval to raise up to ₹6,650 crore through a fresh issue of equity shares as part of its proposed Initial Public Offering (IPO).
The travel tech platform’s shareholders approved the IPO proposal at an Extraordinary General Meeting (EGM) on December 20, 2025. This approval gives the company the option to go public when market conditions are favourable and after getting the necessary regulatory clearances. The EGM greenlight is an important step in PRISM’s plans to prepare for a public listing.
Along with it, shareholders also approved a bonus issue of equity shares in the ratio of 1:19, meaning 1 fully paid-up share for every 19 existing shares held, with December 5, 2025, set as the record date to determine eligible shareholders.
In this article, let’s explore the reasons behind the delay in OYO’s parent company, PRISM, postponing its IPO for the third time since 2021 and opting to raise debt in the meantime.
Why has been the IPO delayed since 2021?
The news comes months after OYO postponed its third IPO attempt, following resistance from its largest shareholder, SoftBank and valuation concerns. The company had most recently targeted a listing by March 2026 with a valuation of $7 billion, according to Bloomberg News.
Shareholder Resistance: Some of the people or companies that own shares in OYO (called shareholders) weren’t happy with the idea of launching the IPO at that time. The main shareholder causing issues was SoftBank, a large investment company with recent reports indicating around 40% to over 46% ownership in the company. They were concerned about the timing or the valuation, which made them hesitant about moving forward with the IPO.
Valuation Concerns: OYO and its investors had disagreements about how much the company is actually worth. The valuation is important because it determines how much money the company can raise through its IPO. If investors think the company is worth less than what OYO is asking, they may not want to invest.
PRISM IPO Plans and Financial Outlook
According to sources, Ritesh Agarwal-led PRISM has stepped up discussions with key merchant bankers this year, with valuation guidance estimated at $7–8 billion (around ₹70 per share), potentially 25–30 times the company’s EBITDA.
Moody’s recently reaffirmed PRISM’s corporate family rating with a stable outlook and expects the company’s EBITDA to more than double to approximately $280 million (nearly ₹2,496 crore) in FY26, driven by the expansion of premium shopfronts and continued cost efficiencies.
Despite facing delays, the company’s revenue rose 47 % year‑on‑year to ₹2,019 crore in the first quarter of fiscal 2026, compared with ₹1,371 crore in the same period a year earlier. Over the same period, Gross Booking Value (GBV surged 144 % to ₹7,227 crore in Q1 FY26, up from ₹2,966 crore in Q1 FY25).
According to founder Ritesh Agarwal, this growth was driven by new hotel openings, strong double‑digit same‑store performance, a shift toward premium offerings and improved room utilisation.
Company overview & Others
PRISM (formerly Oravel Stays Ltd.) is the parent company of OYO and a diverse portfolio of brands that serve over 100 million customers across more than 35 countries. From short-term stays and extended living to luxury retreats, co-working spaces, event venues, and hospitality technology solutions, PRISM enhances and simplifies urban living through scalable innovation.
The group’s portfolio includes hotels across brands such as OYO, Motel 6, Townhouse, Sunday, and Palette. In the vacation home segment, it operates multiple brands, including Belvilla, DanCenter, CheckMyGuest, and Studio Prestige. The extended stay category is represented by Studio 6, which was acquired through G6 Hospitality in the US.
Beyond accommodations, the portfolio also features workspaces and event venues through Innov8 and Weddingz.in. Additionally, the group provides hospitality technology solutions, including AI-powered partner tools and data science platforms.
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
