Prism Hotels Files Draft Prospectus For ₹6,650 Crore Fresh Issue

Prism Hotels & Resorts, the parent company of the hotel and hospitality service provider Oyo, has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI). This is yet another step taken by the company towards its planned IPO.

The planned IPO will be entirely a fresh issue of equity shares worth up to ₹6,650 crore. There is no offer for sale (OFS), meaning existing shareholders will not dilute their holdings through the public issue.

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According to the UDRHP, the company may also undertake a pre-IPO placement of up to ₹1,330 crore before filing the red herring prospectus (RHP). If the placement is completed, the amount raised will be adjusted against the size of the fresh issue.

Majority Of Proceeds To Go Towards Debt Repayment

Prism plans to utilise ₹4,987.5 crore from the net proceeds to repay or prepay certain outstanding borrowings. The remaining funds will be used for general corporate purposes, as stated in the draft offer document.

The proposed fund utilisation indicates the company’s focus on strengthening its balance sheet by reducing debt before expanding its operations further.

Earlier this month, SEBI cleared the company’s proposed IPO. According to Moneycontrol, Prism had confidentially filed its draft papers in December 2025 after receiving shareholder approval for the fundraising plan.

Moneycontrol had also reported that the company is targeting a valuation of approximately $7-8 billion, lower than the nearly $12 billion valuation it had pursued during its withdrawn IPO attempt in 2021.

Existing Investors Not Participating In Sale

The public issue has been structured entirely as a fresh equity offering, with none of the existing investors selling shares.

The company’s shareholder base includes SoftBank’s SVF India Holdings, Microsoft, Airbnb, Peak XV Partners, Lightspeed, RA Hospitality Holdings, Global Ivy Ventures and InCred, among others. All these investors will continue to hold their stakes following the IPO, subject to dilution resulting from the fresh issue.

The absence of an OFS means the entire capital raised through the issue will flow into the company.

Financial Performance Shows Higher Profitability

According to the UDRHP, Prism reported revenue from operations of ₹6,941 crore during the first nine months of FY26, compared with ₹6,259 crore for the whole of FY25.

Profit after tax rose to ₹748 crore during the nine-month period, up from ₹245 crore reported in the previous financial year.

EBITDA increased to ₹2,127 crore from ₹953 crore a year earlier. Excluding exceptional items, share-based payment expenses and other income, EBITDA stood at ₹1,968 crore.

Hospitality Network Continues To Expand

As of December 31, 2025, Prism operated 243,303 hotels and 144,583 homes across global markets, according to the draft prospectus.

In India, the company had 14,937 company-serviced storefronts. The number of company-serviced hotel storefronts increased to 1,573 by the end of December 2025 from 1,053 nine months earlier.

The filing marks another milestone in Prism’s listing process. Subject to regulatory approvals and market conditions, the company is expected to proceed with the next stages of the IPO, including filing the red herring prospectus before launching the public issue.