OYO IPO to Get Final SEBI Nod This Week, Issue Size Cut to ₹6,500 Crore

OYO is finally getting through the door. PRISM, the parent company of OYO, is set to receive its final SEBI nod for the long-awaited IPO this week. The fundraise size has been cut from ₹6,650 crore to ₹6,500 crore. Listing is now expected in the coming months.

For retail investors who've been tracking this story since 2021, here's where things stand.

What Changed

Two things.

One, the issue size is smaller. PRISM had shareholder approval to raise up to ₹6,650 crore. The actual filing will go through at ₹6,500 crore. Not a huge cut, but it tells you the bankers are being careful about market absorption.

Two, the regulator has signalled it's done reviewing. After almost five months with the confidential DRHP, SEBI's final observations are expected this week. Once that's in hand, PRISM can move to the public UDRHP and price band stage.

Third Time Lucky for Ritesh Agarwal

This is OYO's third crack at the public markets.

The first try was 2021. The company filed for ₹8,430 crore at a $12 billion valuation. It was the unicorn peak. Markets turned, and the plan was shelved.

The second try was 2023, also through the confidential route. It quietly lapsed.

This attempt looks different. PRISM is now profitable. The company has reported twelve straight EBITDA-positive quarters. Moody's has reaffirmed its B2 rating with a stable outlook and expects EBITDA to more than double in FY26 to around $280 million.

The Numbers Backing the Story

Q1 FY26 (June quarter) showed the turnaround clearly.

• Net profit: over ₹200 crore, up from ₹87 crore a year earlier
• Revenue from operations: ₹2,019 crore, up 47%
• Gross booking value: ₹7,227 crore, up 144%

FY25 was the first full-year profit at ₹244.8 crore, though most of that came from a deferred tax credit of ₹767.5 crore. Strip that out and the company was still in the red. The Q1 FY26 numbers, on the other hand, look like clean profit.

Valuation and Use of Funds

PRISM is targeting a $7 to $8 billion valuation. That's roughly ₹58,000 to ₹66,000 crore, well below the $12 billion peak from 2021. The benchmark price being discussed is around ₹70 per share.

Since this is a 100% fresh issue with no OFS, all the money goes to PRISM's balance sheet. The main use is debt repayment, technology investment, and funding the integration of G6 Hospitality, the US budget hotel chain it acquired last year for $525 million.

What Retail Should Watch

Three things.

• The final price band. At 25 to 30 times EBITDA, this isn't cheap. Compare it with global hospitality peers before applying.
• The lock-in. SoftBank, Lightspeed and Microsoft are still on the cap table. Their selling intent post listing will matter.
• The listing window. Early 2026 IPOs have averaged just 0.3% listing gains. Don't expect a Zomato-style debut.

FAQs

When will the OYO IPO open? Final SEBI nod expected this week. Listing window: next few months.

What is the OYO IPO size? ₹6,500 crore, cut from ₹6,650 crore. 100% fresh issue.

What is OYO's IPO valuation? $7 to $8 billion, or roughly ₹58,000 to ₹66,000 crore.