Oyo Parent Prism Secures Approval for Rs 6,650 Crore IPO
Oyo’s parent company, Prism, has successfully obtained shareholder approval for an ambitious initial public offering (IPO) aimed at raising up to Rs 6,650 crore. This milestone was achieved during an Extraordinary General Meeting (EGM) conducted on December 20, 2025.
Key Details of the IPO
– Approval: Shareholders greenlit the plan to raise up to Rs 6,650 crore through a fresh issue of equity shares, contingent upon regulatory approvals and market conditions.
– Bonus Issue: Along with the IPO, shareholders approved a bonus equity share issue at a ratio of 1 fully paid-up share for every 19 existing shares. The record date for this issue is set at December 5, 2025.
Strategic Approaches and Outlook
The EGM decisions indicate significant progress in Prism’s preparation for a public listing. Moody’s has reiterated Prism’s corporate family rating with a stable outlook, projecting the company’s EBITDA to exceed $280 million (approximately Rs 2,496 crore) in the financial year 2026. This growth is attributed to:
– Expansion of Premium Storefronts: Focusing on upscale accommodations and increasing brand presence.
– Cost Efficiency: Enhanced operational management aimed at reducing costs while maintaining service quality.
Oyo’s Impressive Financial Performance
Oyo recently reported a profit after tax (PAT) of over Rs 200 crore in the first quarter of the current fiscal year, as detailed in an email from founder Ritesh Agarwal to the management committee and shareholders in September. Key highlights include:
– Year-on-Year Growth: The PAT more than doubled compared to Rs 87 crore in the same quarter of the previous fiscal year.
– Revenue Surge: Total revenue reached Rs 2,019 crore, reflecting a 47% increase from Rs 1,371 crore in the prior year.
– Gross Booking Value: For the first quarter of FY 2026, gross booking value surged to Rs 7,227 crore, a notable 144% jump from Rs 2,966 crore in FY 2025.
Driving Factors Behind Growth
Agarwal attributed this remarkable growth to:
– Hotel Openings: The aggressive expansion of new properties.
– Same Store Growth: Consistent performance from established locations.
– Premiumization: Enhancements in customer offerings and room utilization.
Additionally, Agarwal emphasized the importance of disciplined cost management and a resolute focus on customer experience, particularly through premium brands like Townhouse and Sunday hotels.
Conclusion
The approval of the IPO by Prism’s shareholders signifies a pivotal moment in the company’s evolution. With expectations of strong financial performance and the implementation of efficient growth strategies, Prism aims to solidify its position in the market. As the planned IPO unfolds, stakeholders will be keenly observing how Prism continues to leverage its success while navigating the public market landscape.