The proposed issue does not include an Offer for Sale (OFS), meaning none of the existing shareholders—including founder Ritesh Agarwal, SoftBank’s SVF India Holdings, Microsoft, Airbnb, Peak XV, Lightspeed, Khazanah and Greenoaks Capital—will sell shares as part of the IPO.
PRISM may also undertake a pre-IPO placement of up to ₹1,330 crore before filing the Red Herring Prospectus. If completed, the amount raised through the placement will reduce the size of the fresh issue.
According to the filing, the company plans to utilise ₹4,987.5 crore from the net proceeds towards repayment or prepayment of borrowings, with the remaining funds earmarked for general corporate purposes.
The filing comes after a sharp improvement in the company’s financial performance.
For the nine months ended December 31, 2025, PRISM reported revenue from operations of ₹6,941 crore, surpassing its entire FY25 revenue of ₹6,259 crore. Net profit stood at ₹748 crore, compared with ₹245 crore in FY25, while EBITDA more than doubled to ₹2,127 crore from ₹953 crore a year earlier. Adjusted EBITDA, excluding exceptional items, share-based payments and other income, rose 80% to ₹1,968 crore.
The company operates 43 brands across more than 35 countries, spanning hotels, vacation homes, extended-stay properties and online listings. As of December 31, 2025, its network comprised 24,303 hotels, 124,668 homes and 144,583 listings, having served over 119 million unique customers since inception.
In India, PRISM has expanded its company-serviced hotel portfolio, increasing storefronts from 1,053 in March 2025 to 1,573 by December 2025. Gross Booking Value (GBV) from these hotels reached ₹1,346 crore during the first nine months of FY26, already about 65% higher than the full FY25 figure. Company-serviced hotels accounted for nearly half of India’s GBV during the period.
Internationally, the acquisition of G6 Hospitality, owner of the Motel 6 and Studio 6 brands, has emerged as a major growth driver. The US business generated ₹12,022 crore in GBV during the first nine months of FY26, around 155% higher than the full FY25 level, contributing more than 52% of the company’s global GBV.
The Europe business also expanded, with homes and listings increasing to 269,251 from 208,901 at the end of FY25. Despite this scale, the company said it has captured less than 1% of the fragmented European homes market.
The filing also highlights improving customer engagement. Nearly 67.6% of stays came through direct booking channels, while repeat demand stood at 61.8%. PRISM’s loyalty ecosystem now has 26.4 million members, including 19.07 million OYO Wizard members and 7.4 million My6 members.
Separately, S&P Global Ratings has revised PRISM’s outlook to Positive from Stable, while affirming its ‘B’ issuer credit rating, citing improving profitability, stronger cash generation and the expected strengthening of the balance sheet following the proposed IPO.
The filing also comes weeks after the Delhi bench of the Income Tax Appellate Tribunal (ITAT) quashed a ₹3,885 crore angel tax demand against the company, removing a significant tax overhang ahead of the proposed listing.
Key risks
Despite the turnaround, the draft prospectus outlines several risks for investors. The company continues to carry significant borrowings, which is reflected in its decision to deploy nearly three-fourths of the IPO proceeds towards debt repayment. It also remains exposed to macroeconomic conditions and travel demand across key markets, particularly the US and Europe, which together account for a substantial share of its business.
The filing further notes that this will be the company’s first public issue, with no prior trading history for its shares. As a result, there is no assurance regarding an active post-listing market or the price at which the shares may trade after listing. Investors have also been advised to carefully evaluate the risk factors detailed in the prospectus before making an investment decision.
