PRISM, the parent entity of hospitality unicorn OYO, has secured shareholder approval to raise up to INR 6,650 crore ($743 million) through a fresh equity issue as part of its long-awaited IPO, marking a pivotal step toward public listing after years of delays. The nod came at an Extraordinary General Meeting (EGM) on December 20, 2025, alongside a simplified 1:19 bonus issue (one fully paid share for every 19 held), with December 5 as the record date.
Shareholder Greenlight Amid Bonus Backlash
Shareholders overwhelmingly backed the IPO resolution, giving PRISM flexibility to tap markets “at an appropriate time” pending regulatory nods. The EGM followed a controversial November bonus proposal—initially a complex 6,000:1 structure favoring founder Ritesh Agarwal and large holders—which drew flak for opacity and skewed benefits. PRISM swiftly withdrew it, opting for the equitable 1:19 ratio funded from share premium and reserves, restoring trust ahead of listing prep.
Moody’s reaffirmed PRISM’s stable outlook, projecting EBITDA doubling to ~INR 2,496 crore ($280M) in FY26 via premium expansions and efficiencies. Q1 FY26 showed PAT surging to INR 200+ crore (from INR 87 crore YoY), revenue at INR 2,019 crore (+47%) and GBV at INR 7,227 crore (+144%).
OYO’s IPO Odyssey: From 2021 Hype to 2026 Reality
OYO’s public debut saga spans four years:
| Milestone | Date | Details |
|---|---|---|
| DRHP 1 | Mar 2021 | Filed at $9B valuation; withdrawn Oct 2021 (market volatility). |
| DRHP 2 | Apr 2023 | Refiled; withdrawn May 2024 (“material changes,” SoftBank pushback). |
| Rebrand | Oct 2025 | OYO → PRISM for global focus (Motel 6, Studio 6 acquisitions). |
| EGM Approval | Dec 20, 2025 | INR 6,650 Cr fresh issue OK; bonus simplified. Target: H1 2026 at $7-8B valuation. |
Delays stemmed from losses (INR 1,286 Cr FY23), SoftBank’s $2.2B loan concerns and governance tweaks. Founder Agarwal’s emails signal confidence: 12 straight profitable quarters.
Financial Turnaround: Profitability Amid Debt
OYO’s path from burn to black:
| Metric | FY24 | FY25 | Change |
|---|---|---|---|
| Revenue | INR 5,389 Cr | INR 6,253 Cr | +16% |
| EBITDA | INR 888 Cr | INR 1,083 Cr | +22% |
| PAT | INR 230 Cr* | INR 245 Cr* | +7% (tax gains) |
| Debt | ~INR 7,000 Cr | Ongoing (refinancing) | – |
*Deferred tax credits masked core losses (pre-tax: -INR 489 Cr FY25). India contributed 20% revenue; expansions (US/Europe) drove growth but costs. Q1 FY26 PAT doubled YoY.
OYO joins as hospitality’s comeback kid; PRISM eyes $7-8B valuation vs $10B peak. Risks: Debt (INR 7,000 Cr+), overseas drag, SoftBank exit needs.
PRISM’s EGM clears a major hurdle for H1 2026 debut, rewarding turnaround from FY20’s INR 2,000 Cr+ losses. With profitability entrenched and acquisitions digested, OYO bets on premium hotels and global scale to command public premiums—finally listing after the longest unicorn wait.
Read this: OYO IPO Is Finally on the Way as the Company Seeks Approval to Raise up to Rs 6,650 Crore
