Oravel Stays Limited, the parent company of OYO, is getting ready for one of India’s biggest upcoming initial public offerings (IPO). The company, which has recently changed its corporate identity to PRISM, has received approval from the Securities and Exchange Board of India (SEBI) to move ahead with its proposed ₹6,650 crore IPO.
This marks another attempt by the company to go public after withdrawing its earlier IPO plans in 2021 and 2024. This time, the entire IPO will be a fresh issue of shares, which means none of the existing investors will sell their stake through the public offering.
Founded in 2012 by Ritesh Agarwal, PRISM has grown from an Indian budget hotel startup into a global hospitality company operating in more than 35 countries. According to the company, it has served over 119 million customers and now manages nearly 2.94 lakh storefronts worldwide, including hotels, holiday homes and subscription-based property listings.
IPO Money to Reduce Debt as Global Business Expands
The biggest purpose of the IPO is to reduce the company’s debt. Out of the total ₹6,650 crore issue, around ₹4,987.5 crore will be used to repay a large part of the Term Loan B taken by its Singapore-based subsidiary.
The loan was raised in December 2024 to fund major international acquisitions, including the purchase of G6 Hospitality, the owner of Motel 6 and Studio 6 in the United States. The $525 million acquisition added nearly 1,500 hotels to PRISM’s global network and helped strengthen its presence in North America.
The company believes repaying this loan will lower its interest costs and improve its financial position. PRISM also has the option to raise up to ₹1,330 crore through a pre-IPO placement before the public issue, which would reduce the size of the fresh share issue.
The company’s shareholding remains largely unchanged. SoftBank continues to be the largest shareholder with a little over 40% stake, while founder Ritesh Agarwal directly and indirectly owns more than 26% of the company. Existing investors such as Microsoft, Airbnb, Peak XV, Lightspeed, Khazanah and Greenoaks are not selling any shares in the IPO.
Before filing for the IPO, PRISM also increased its total number of shares by issuing two bonus share issues—a 1:1 bonus followed by a 19:1 bonus.
Revenue Crosses Last Year’s Total in Just Nine Months
PRISM has reported strong financial growth in the first nine months of FY26. The company earned operating revenue of ₹6,940.97 crore during the period ending December 31, 2025. This is already higher than its full-year FY25 operating revenue of ₹6,252.83 crore.
The company reported a net profit of ₹748.34 crore during these nine months. However, a large part of this profit came from a deferred tax credit of ₹559 crore, which is an accounting adjustment related to losses from previous years. Without this adjustment, the company’s underlying profit before tax was around ₹245 crore.
Its operating cash flow also improved significantly. PRISM generated ₹1,593.77 crore from operating activities during the first nine months of FY26, showing that its core business is becoming stronger. Founder Ritesh Agarwal has projected that the company could report around ₹1,100 crore in profit after tax and more than ₹2,000 crore in EBITDA for the full financial year.
The company also received a major tax relief after winning a case before the Income Tax Appellate Tribunal related to a long-running share premium tax dispute.
One of the biggest changes in PRISM’s business is that most of its revenue now comes from international markets. India contributes just over 16% of the company’s operating revenue, while nearly 84% comes from overseas businesses. After acquiring Motel 6, the United States has become PRISM’s largest market, contributing more than half of its total gross booking value. Europe is now the second-largest international market.
In India, the company is focusing more on premium hotels managed directly under its CheckIn brand. Although these properties make up a small part of its total Indian network, they generate almost half of the company’s gross booking value in the country because they bring in higher revenue.
Legal Challenges and Other Risks Remain
Even though PRISM’s financial performance has improved, the company still faces some important risks before its public listing.
The biggest legal challenge is its long-running dispute with Zostel over a failed acquisition deal. If the final court decision goes against PRISM, the company may have to transfer up to 7% of its shares to Zostel.
The company also inherited several issues after buying Motel 6, including complaints from franchise owners in the United States and legal matters linked to the hotel chain’s past operations.
Another point that investors may watch closely is the company’s balance sheet, where a large portion of its assets consists of goodwill and intangible assets created through acquisitions. PRISM and its subsidiaries are also involved in multiple civil and criminal cases.
Despite these challenges, PRISM is entering the IPO market with stronger financial results, improving cash flow and a growing international business. The success of its public offering will depend on whether investors believe its global expansion and improving profitability are strong enough to outweigh the legal and financial risks that still remain.