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Kolkata: 2025, which set a record in public issues, is behind us but the deluge of IPOs will continue, analysts have told us. Hospitality giant OYOs IPO is on the way. It will be floated in 2026.
Prism, the parent company of OYO has submitted draft red herring prospectus through the confidential route to Sebi for a public issue. According to initial plans, the IPO will raise Rs 6,650 crore and the company's valuation is estimated at $7-8 billion (between Rs 58,000 and Rs 66,000 crore). However, this is the company's fourth attempt to raise funds, having advanced some way thrice between 2021 and 2024, only to withdraw later.
Prism's IPO will consist entirely of the issuance of new equity shares. Needless to say, this offers a signal of hope of the management in the future of the company. Shareholders approved the proposal at their meeting held on December 20, 2025. Prism earlier appointed ICICI Securities, Axis Capital, Goldman Sachs, and Citibank as lead managers, but more institutions can be added to the list.
Over the years, Prism has expanded its business and has succeeded in strengthening its operations in India as well as in other countries. It acquired G6 Hospitality in the US that has given it ownership of brands such as Motel 6 and Studio 6. Reports state that the company posted a PAT of Rs 200 crore in the first quarter of FY26 while revenue stood at Rs 2,019 crore, which marked a 47% jump from the previous year. Gross booking value clocked a stupendous 144% rise reaching Rs 7,227 crore.
Prism first filed for an IPO in 2021, but has to withdraw due to global market volatility and tepid investor sentiment after the war broke out between Russia and Ukraine. The mood in the stock market is much better now and Prism is making consistent profits which makes a public issue highly feasible.
According to reports, OYO is trading at Rs 27 in the unlisted market. Its 52-week high is Rs 57 and low is Rs 27. The company has a market cap of Rs 37,835 crore. Its debt-to-equity ratio is 1.89, P/B ratio is 10, and P/E ratio is 158.82.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, InvITs and any form of alternative investment instruments and crypto assets.)
