PRISM, the parent of OYO, plans to nearly halve the fresh issue in its proposed IPO to up to ₹3,350 crore from about ₹6,650 crore, as per a PTI report carried by CNBC-TV18 on 20 October 2026. The report cites people familiar with the matter. The company has not confirmed the new size in a filing yet.
What is changing in the PRISM IPO?
The source says the original size was set before the company's latest financial performance came through. Strong cash generation and a better balance sheet have lowered how much fresh capital it needs.
The use of money stays the same in spirit. Under the revised structure, most of the proceeds would go towards repaying or prepaying borrowings. Earlier, around ₹5,000 crore of the ₹6,650 crore was meant for debt. A person quoted in the report said the residual debt would be repaid over two to three years from the business's own cash flows.
| Item | Earlier plan | Reported revision |
|---|---|---|
| Fresh issue | About ₹6,650 crore | Up to ₹3,350 crore |
| Offer for sale | None | Not mentioned |
| Main use | Debt repayment, about ₹5,000 crore | Most proceeds for borrowings |
What the company has already filed
PRISM filed its updated draft prospectus (UDRHP) with SEBI in June 2026 for a ₹6,650 crore fresh issue with no offer for sale. Outlook Business reported at the time that ₹4,987.5 crore was earmarked for debt, and that a pre-IPO placement of up to ₹1,330 crore was possible before the red herring prospectus. Any such placement would reduce the fresh issue.
The updated filing showed revenue of ₹6,941 crore and profit after tax of ₹748 crore for the nine months to 31 December 2025.
Why is the size falling?
The earnings numbers explain the logic. Moody's Ratings has revised its outlook on PRISM to positive from stable and kept the B2 corporate family rating. It said OYO's EBITDA more than doubled to ₹2,630 crore in FY26 from ₹1,080 crore in FY25. Moody's expects it to reach around ₹3,000 crore over the next 12 to 18 months.
Founder Ritesh Agarwal holds 30.52% of the company, and SoftBank's SVF India Holdings holds 40.04%, according to the same report.
What our data shows
At about ₹3,350 crore, PRISM would be the 17th largest of the 49 IPO filings and plans we have tracked this year. It was in the top few before the cut. Another 67 companies have filed draft papers so far this month, per our tracker. A smaller issue still ranks among the bigger ones on our upcoming mainboard IPO list.
What happens next
No dates, price band or lot size exist yet. They arrive only with the red herring prospectus. The revised size should show up in that document or a fresh filing, and until then it is a report, not a fact. We will carry it in our IPO news section. The CNBC-TV18 report has the full details.
