Parent company of OYO, Prism, applies for IPO in India

Prism, the holding company of OYO Hotels, has officially submitted paperwork for a confidential IPO in India, aiming for a valuation in the range of $7 billion to $8 billion, as per a spokesperson. Shareholder approval was secured by Prism, backed by SoftBank, towards the end of the previous month. This marks OYO’s third try at an IPO, following their initial attempt in 2021 with plans to raise approximately $1.2 billion through new and existing share issuances. However, the company withdrew its filings in 2023 and later in the following year.

OYO’s IPO endeavor is part of a broader trend in the industry. Travelstack Tech Limited, the entity behind the hotel-centric corporate travel platform TravelPlus, recently filed a draft red herring prospectus with SEBI in preparation for their IPO. Asia-based experiences platform Klook also took steps in the IPO direction by filing a form F-1 with the U.S. Securities and Exchange Commission. Additionally, Navan, a business travel and expense management platform, announced its IPO plans in October. The company planned to list on Nasdaq under the symbol “NAVN” and shared positive Q3 results in December, describing it as a “strong debut.” CFO Amy Butte will resign on January 9. Formerly known as TripActions, the company considered going public in 2022 but postponed its plans.

This IPO move by Prism and OYO reflects a shift in the industry towards public listings and market opportunities. With a valuation target of $7 billion to $8 billion, Prism’s IPO could potentially catalyze further financial growth and expansion for OYO Hotels. By securing shareholder approval, the company has positioned itself to take advantage of the current market conditions and investor interest in the travel and hospitality sector.

The IPO filing by Prism signifies a strategic move to capitalize on the momentum within the travel industry and to leverage the strength of the OYO brand in the Indian market. This development also underscores the company’s commitment to exploring all avenues for growth and financial success. With a history of attempted filings and withdrawals, this latest IPO attempt by OYO and Prism appears to be a carefully calculated step towards achieving their long-term business objectives and securing a strong market position in the evolving landscape of the hospitality sector.