Prism, the parent company of Indian hospitality platform OYO, has taken a significant step toward a long-awaited stock market debut after shareholders approved plans to raise up to $742 million through a fresh equity issue. The decision revives IPO ambitions that have been repeatedly delayed over the past four years and gives the company flexibility to choose the timing of a public listing based on market conditions.
The shareholder approval does not set a fixed IPO date, instead allowing Prism to tap public markets when conditions are more favorable. This marks a strategic shift from earlier attempts, when the company pushed forward with ambitious valuation targets amid volatile market sentiment. OYO first filed for an IPO in 2021, seeking a valuation of around $12 billion, but faced multiple setbacks driven by regulatory scrutiny, investor concerns, and internal disagreements among shareholders.
Financially, Prism enters this new phase in a stronger position than during its previous IPO attempts. For the 2025 financial year, the company reported a 16 percent increase in revenue to approximately 62.5 billion rupees. Net profit after exceptional items rose by 6.6 percent to 2.45 billion rupees, while the company recorded its twelfth consecutive EBITDA-positive quarter. These results reflect tighter cost controls, improved operational efficiency, and a greater focus on higher-margin segments.
However, the company’s balance sheet remains a central issue for potential investors. Prism is carrying debt exceeding 70 billion rupees, accumulated during years of aggressive expansion and restructuring. Analysts expect a substantial portion of IPO proceeds to be allocated toward debt repayment rather than rapid growth initiatives. As a result, the offering is increasingly viewed as a financial reset rather than a purely expansion-driven listing.
Market expectations have adjusted accordingly. Reports suggest Prism may now target a valuation closer to $7–8 billion, significantly below earlier ambitions. This recalibration aligns with broader investor sentiment, which currently favors sustainable profitability and disciplined capital management over aggressive growth narratives, particularly in the travel and hospitality sector.
At the same time, OYO is evolving beyond its original budget accommodation model. Prism has been investing in premium and mid-scale properties, aiming to improve margins and diversify revenue streams. This shift could strengthen the brand’s long-term positioning but may also reshape relationships with hotel partners accustomed to OYO’s low-cost, high-volume approach.
The renewed IPO push comes at a critical moment for Prism. Public market investors will be watching closely for evidence that recent profitability gains are sustainable and that the company can balance growth ambitions with financial discipline. If successful, the IPO could mark a turning point for one of India’s most prominent travel startups. If delayed again, it may reinforce doubts about Prism’s ability to align strategy, valuation, and market reality.
