PRISM, OYO’s Parent Company, Submits Secret IPO in India

PRISM has filed for an IPO in India, a move that comes shortly after receiving shareholder approval to raise $742 million. The parent company of OYO Hotels made a confidential filing for the IPO, allowing them to submit draft papers to the Securities and Exchange Board of India for review without making them public until they proceed with the offering. This strategic move gives the company flexibility in accessing public markets.

The shareholders approved the IPO at a meeting on December 20, granting PRISM the go-ahead without a timeline, which allows the company to tailor its public offering to market conditions. This marks a significant development for PRISM, particularly after previous attempts to go public in 2021 were thwarted due to opposition from its largest shareholder, SoftBank. OYO initially aimed for a valuation of up to $12 billion but later decided to shelve its plans. With SoftBank’s Vision Fund holding a larger stake than founder Ritesh Agarwal’s 30 percent, negotiations led to the withdrawal of the IPO.

In financial terms, PRISM reported robust growth, with a 16 percent year-on-year revenue increase to $695.92 million in fiscal 2025. The net profit after exceptional items saw a 6.6 percent rise to $27.2 million, operating profit stood at $4.96 million, and the gross booking value surged by 53 percent to $195.78 million. The company’s revenue hit $75.3 million, with the global hotel count at 20,000, showcasing its strong performance in the hospitality sector.

The IPO filing adds to a slew of listings in a year marked by strong equity issuance and investor appetite. India emerged as the world’s second-largest primary equity market in 2025, having raised $21.6 billion through 352 deals by December 18, surpassing the previous year’s total of $20.5 billion. This robust fundraising underscores the growing confidence in the Indian market. PRISM’s strategic move aligns with its long-term vision of providing exceptional customer experiences, leveraging data for innovation, and expanding its presence across diverse geographies and market segments.

Ritesh Agarwal, the chairman of G6 Hospitality, which oversees Motel 6 and Studio 6, emphasized the company’s commitment to building a sustainable and agile business that adapts to changing industry dynamics. Additionally, India’s minister of tourism and culture, Gajendra Singh Shekhawat, hinted at the country’s plans to grant the hotel industry a harmonized infrastructure status, aiming to attract new investments and bolster tourism. This proactive approach bodes well for the future of the hospitality sector in India, setting the stage for further growth and development.