PRISM Files for ₹6650 Crore IPO as Profitability Soars

IPO: Global hospitality technology firm PRISM, the parent company of OYO, has officially filed its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the Securities and Exchange Board of India (SEBI). The company is preparing for an initial public offering (IPO) featuring a fresh issue of shares valued at up to ₹6650 crore. Notably, the offering is structured entirely as a fresh issue, meaning existing marquee shareholders including SoftBank, Microsoft, Airbnb, and founder Ritesh Agarwal are not selling their stakes through this public issuance.

Financial Performance and Growth:
The filing highlights a significant improvement in the company’s financial health, with revenue from operations for the nine months ended December 31, 2025 (9MFY26), reaching ₹6,941 crore. This figure already surpasses the total revenue recorded for the full fiscal year 2025. Profitability has similarly surged, with the company reporting a profit after tax of ₹748 crore for 9MFY26, a substantial increase compared to the ₹245 crore profit achieved in FY25. EBITDA also showed strong growth, reaching ₹2127 crore for the same nine-month period.

Strategic Expansion and Market Presence:
PRISM continues to scale its operations across more than 35 countries, managing a network of over 24,000 hotels and nearly 125,000 homes. The company’s growth is particularly visible in two key areas:

India Operations: The company is expanding its “company-serviced” hotel model, which allows for greater control over service standards and brand experience. This segment saw a significant rise in storefronts and contributed nearly 50% of the company’s India Gross Booking Value (GBV).

US and European Markets: The acquisition of G6 Hospitality has turned the US business into a primary driver of scale, with the US market contributing over 52% of PRISM’s global GBV during the nine-month period. Simultaneously, PRISM has expanded its European footprint through brands like Belvilla and DanCenter, identifying significant room for further growth in that region.

Positive Outlook and Regulatory Developments:
The company’s growth trajectory has earned recognition from S&P Global Ratings, which recently revised PRISM’s outlook to “Positive” while citing improved cash generation and the transformative potential of the upcoming IPO on the company’s balance sheet. Furthermore, PRISM received a major regulatory boost on June 4, when the Delhi bench of ITAT struck down a substantial ₹3,885 crore tax demand, ruling that share premium from certain preference shares could not be taxed as income under the Angel Tax provision. This favorable ruling removes a material uncertainty for the company as it moves forward with its IPO plans.

Regarding the use of proceeds, PRISM plans to allocate ₹4987.5 crore from the net proceeds toward the repayment or prepayment of existing borrowings, with the remaining funds designated for general corporate purposes.