PRISM, the parent company of hotel aggregator OYO, has filed an updated draft red herring prospectus (DRHP) with SEBI, aiming for its third IPO attempt. The forthcoming public issue will be entirely fresh equity, highlighting PRISM’s expanded global hospitality footprint and a strengthened leadership stake ahead of listing.
- Founder Ritesh Agarwal holds a combined stake exceeding 30%
- SoftBank’s majority share stands at 40.04%
- PRISM posted ₹1,214.4 crore profit in 9 months to December 2025
What happened
PRISM, the holding company for OYO, filed an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as part of its third attempt to go public through an initial public offering (IPO). This fresh issue-only IPO is valued at ₹6,650 crore and follows two unsuccessful efforts including a confidential filing in 2023. The company rebranded from OYO to PRISM last year to reflect its broader hospitality ambitions.
The updated DRHP reveals that PRISM has a complex ownership structure with founder Ritesh Agarwal increasing his holdings significantly to a combined stake exceeding 30% through direct and various indirect channels. SoftBank’s affiliate continues to hold the largest single stake at 40.04%. The company’s shareholder base is wide-ranging with over 81,000 shareholders including many promoter group entities, reinforcing a strong backing for the proposed IPO.
Why it matters
PRISM’s IPO marks an important milestone for the hospitality tech sector in India and globally, signaling renewed investor confidence in OYO’s business model and growth trajectory. By focusing solely on fresh equity issuance, the company aims to raise capital for expanding its portfolio which includes hotels, resorts, vacation rentals, and coworking spaces across multiple brands such as Motel 6 and Innov8.
Financially, PRISM presents a promising picture with a profit of ₹1,214.4 crore reported in the nine months ending December 2025 and a near doubling of net profit in FY25 from the prior year. The company recently secured tax relief amounting to ₹3,885 crore related to share premiums from its parent entity, enhancing its financial stability ahead of listing.
What to watch next
Market participants and investors will closely monitor PRISM’s final IPO pricing and subscription details when it launches. The company’s ability to sustain profitability and demonstrate growth across its subsidiaries and joint ventures will be key factors influencing investor sentiment. The evolving shareholding pattern, particularly founder and major institutional stakes, will also draw significant attention.
Additionally, PRISM’s progress in consolidating its various hospitality brands under a global platform model will be critical to watch as it seeks to compete with other international players. The company’s management team, including notable figures like CEO Ritesh Agarwal and SoftBank nominees on the board, will play an essential role in navigating post-IPO growth and regulatory expectations.