In a significant step towards its long-awaited stock market debut, OYO's parent entity, PRISM, has received the green light from its shareholders to raise a substantial sum through a fresh issue of shares. This move paves the way for the hospitality and travel technology firm to proceed with its proposed initial public offering (IPO).
Shareholder Approval for Major Fundraise
Shareholders granted their approval at an extraordinary general meeting (EGM) held on December 20. The resolution passed allows the company to raise up to Rs 6,650 crore by issuing new equity shares as part of the IPO process. This crucial nod provides PRISM with the flexibility to approach the capital markets when conditions are favourable, subject to receiving the necessary regulatory clearances.
The EGM's outcome marks a pivotal milestone in the company's listing preparations. It signifies steady progress in aligning internal approvals ahead of a potential public issue, bringing the firm closer to its goal of a public market debut.
Improved Financial Outlook and Growth Drivers
The development coincides with a strengthening financial outlook for the company. In a recent assessment, global ratings agency Moody's reaffirmed PRISM's corporate family rating with a stable outlook. More notably, Moody's projected that the firm's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is expected to more than double to approximately $280 million (nearly Rs 2,496 crore) in the financial year 2025-26 (FY26).
This anticipated growth is forecasted to be driven by two key strategic initiatives:
- Expansion of premium storefronts: A continued focus on scaling up its portfolio of premium hotel properties.
- Continued cost efficiencies: Sustained efforts in optimizing operational costs and improving margins.
Path Forward and Market Context
With the shareholder mandate now in place, PRISM can advance to the next stages of the IPO process, which involves filing draft papers with the market regulator, the Securities and Exchange Board of India (SEBI). The final timing and size of the public issue will depend on regulatory approvals and prevailing market conditions.
This move is being closely watched by the Indian startup ecosystem, as a successful listing of a major player like OYO's parent could influence the market sentiment for other technology-led firms awaiting their turn to go public. The proposed fundraise aims to provide the company with capital to fuel its next phase of growth and strengthen its balance sheet.
