OYO parent PRISM secures SEBI approval for proposed IPO

MUMBAI: After years of checking guests in, OYO may soon be checking into Dalal Street. PRISM, the parent entity of hospitality platform OYO, has secured approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), clearing a major regulatory hurdle as the company moves closer to a public market debut. According to a CNBC-TV18 report, the company is now preparing to file an updated draft offer document while evaluating market conditions and investor sentiment before deciding on the timing of the issue.

The approval follows PRISM’s confidential filing of a Draft Red Herring Prospectus (DRHP) in December 2025, a route that allowed the company to begin regulatory review without immediately disclosing detailed financial information to the public.

The company had earlier received shareholder approval to raise up to Rs 6,650 crore through a fresh issue of shares, making it one of the most closely watched public offerings in India’s consumer internet and hospitality sectors.

As part of the next stage, PRISM is expected to submit an Updated Draft Red Herring Prospectus (UDRHP-1) by early July. Once filed, the document will enter a mandatory 21-day public review period before the listing process progresses further.

Industry sources cited in the report suggest the IPO could value the company between $7 billion and $8 billion, although the final valuation will depend on prevailing market conditions and investor appetite at the time of launch. The proposed listing is significant not only because of OYO’s scale but also because it comes at a time when technology-driven consumer businesses are once again testing public market demand after a period of volatility in startup valuations.

PRISM operates one of the country’s largest hospitality and travel technology platforms, with a presence across budget hotels, premium accommodation, holiday homes and related travel services in India and international markets. A consortium of investment banks, including Axis Capital, Citibank, Goldman Sachs, ICICI Securities, SBI Capital Markets, JM Financial, InCred Capital and Intensive Fiscal Services, has been appointed to manage the offering.

For investors, the IPO could offer a fresh opportunity to gauge the public market appetite for India’s travel-tech sector. For OYO, meanwhile, the next challenge may be less about finding rooms and more about finding the right market window.