In a significant move within India's startup ecosystem, Prism, the parent entity of hospitality giant Oyo, has initiated its third attempt to go public. The company has confidentially submitted draft IPO papers to the Securities and Exchange Board of India (SEBI), according to sources familiar with the development.
Details of the Proposed Public Offering
The proposed initial public offering (IPO) aims to raise up to Rs 6,650 crore through a fresh issue of shares. Sources indicate that the SoftBank-backed firm is targeting a valuation in the range of $7 to $8 billion. Notably, the company has stated it currently has no plans for an Offer for Sale (OFS), meaning early investors will not be offloading shares as part of this offering. Oyo has officially declined to comment on the filing.
Joining the 2026 IPO Wave and Path to Profitability
With this filing, Oyo joins a growing list of prominent Indian startups, including quick-commerce player Zepto and fintech major PhonePe, that are eyeing stock market listings in 2026. This trend highlights how India's booming IPO market is becoming a viable avenue for new-age companies to access capital for growth and provide exits to early backers.
The journey to this point has not been straightforward for Oyo. Its IPO plans, first set in motion in 2021, faced delays due to weak market conditions and the company's strategic push towards achieving profitability. This focus appears to have yielded results, with Oyo reporting a net profit of over Rs 200 crore for the first quarter of the fiscal year 2026 (Q1FY26).
Strategic Advantages and Market Context
Opting for a confidential filing provides Prism with several strategic benefits. It offers flexibility in timing the public issue, reduces market scrutiny during the SEBI review process, and allows the company to gauge investor appetite discreetly before the formal launch.
The broader market is witnessing unprecedented activity. Data shows that about 197 companies have either received regulatory clearance or are awaiting SEBI approval, representing a potential fund mobilization of around $31 billion through IPOs in 2026. Oyo has also been strengthening its international presence, notably through the acquisition of US-based G6 Hospitality, the franchisor behind economy lodging brands Motel 6 and Studio 6.
