Prism, the parent company of hospitality platform Oyo, is likely to launch its initial public offering (IPO) in November, according to a Moneycontrol report. The company is in talks with investors to assess demand for the proposed share sale.
However, the timing has not been finalised and will depend on investor interest and market conditions. Regulatory approvals and recommendations from the book-running lead managers (BRLMs), the financial institutions managing the IPO, will also influence the launch date, the report said.
Prism IPO: ₹6,650 crore fresh issue, debt repayment plan
According to its updated draft red herring prospectus (DRHP) dated June 29, 2026, Prism plans to raise up to ₹6,650 crore entirely by issuing new shares. Existing shareholders are not planning to sell their shares as part of the proposed IPO.
Of the money raised, the company intends to use ₹4,987.5 crore to invest in its subsidiary, Oravel Stays Singapore Pte Ltd, which will use the funds to repay or pay off certain loans ahead of schedule. The remaining proceeds will be used for general corporate purposes.
The proposed debt repayment comes as Prism continues to face substantial financing costs. Its consolidated finance costs stood at ₹1,089.3 crore in the nine months ended December 2025, compared with ₹959.2 crore for the full financial year ended March 2025.
These figures cover different reporting periods and should not be directly compared. However, they highlight the significance of borrowing costs for the company.
Oyo parent Prism: Revenue and profit in FY25
Prism’s consolidated revenue from operations rose 16% to ₹6,252.8 crore in FY25 from ₹5,388.8 crore in FY24. Net profit increased to ₹244.8 crore from ₹229.6 crore during the same period.
However, the reported profit was significantly helped by a deferred tax credit of ₹767.6 crore. Without this benefit, the company’s reported earnings would have looked considerably different, as it recorded a pre-tax loss of ₹489.3 crore in FY25.
A deferred tax credit is an accounting benefit linked to taxes that can affect a company’s reported profit without necessarily representing an equivalent cash inflow during that period.
For the nine months ended December 2025, Prism reported revenue of ₹6,941 crore and net profit of ₹748.3 crore. It recorded a pre-tax profit of ₹245.2 crore, while a deferred tax credit of ₹559.3 crore further boosted its bottom line.
The difference between pre-tax profit and net profit underlines the role of deferred tax credits in Prism’s reported earnings. Investors are likely to examine its operating performance and ability to manage debt alongside its headline profit figures.
Oyo’s global hotel and vacation-home business
Founded in India in 2012, Oyo has grown from a budget hotel brand into a global hospitality platform. Its businesses now include hotels, vacation homes and subscription-based property listings.
The company provides property owners and hotel operators with branding, booking and technology services. These include pricing support, revenue management and customer service.
Its hotel brands include Oyo, Sunday, Townhouse, Townhouse Oak, Palette, Motel 6 and Studio 6. Its vacation-home business includes Belvilla, DanCenter and Checkmyguest. Through its subscription-based listings business, properties in Europe can pay a fixed fee to feature on the platform.
As of December 31, 2025, the platform had 293,554 storefronts across more than 35 countries. This included 24,303 hotel storefronts, 124,668 home storefronts and 144,583 subscription listings.
Oyo expands overseas through acquisitions
Prism has expanded its international presence through a series of acquisitions.
In FY25, the group acquired the G6 business, which operates the Motel 6 and Studio 6 hotel brands, for an upfront cash payment of around $503.6 million.
It also acquired France-based Checkmyguest and later bought MadeComfy, a company that manages vacation homes in Australia and New Zealand.
The proposed IPO would provide Prism with funds to address part of its borrowing obligations, with the bulk of the proceeds earmarked for debt repayment. The remaining money would be available for general corporate purposes as the company continues to expand its hospitality business.