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PRISM, the parent company of OYO, has once again knocked on the doors of the stock market by filing updated IPO papers with SEBI. This time, it plans to raise up to ₹6,650 crore through a fresh issue of shares.
The journey: the first attempt came in 2021, during the startup funding frenzy. OYO was aiming for an eye-popping $10-12 billion valuation, but the company was still burning cash, global markets turned volatile, and the IPO never took off.
The second attempt followed in 2023. By then, the company had started reporting profits, but investors were still wary of richly valued tech startups, forcing OYO to pull back once again.
Now comes attempt number three. This time, the company is returning under its parent entity, PRISM, with a more realistic valuation target of $7-8 billion.
Why now: for the first nine months of FY26, PRISM reported ₹6,941 crore in revenue, up from ₹6,259 crore a year earlier. Net profit also jumped sharply to ₹748 crore, compared with ₹245 crore in the previous year.
While OYO started as an India-focused hospitality company, its business has become far more global. India now contributes less than 12% of the company's revenue, while the US has emerged as its single largest market.
The hurdles: the company continues to carry a sizeable debt burden, which is why nearly three-fourths of the IPO proceeds will be used to repay borrowings rather than fund expansion.
It also remains heavily dependent on travel demand, especially in the US and Europe, meaning any slowdown in those markets could affect its business.
After two failed attempts, OYO is back with stronger numbers, a lower valuation and what it hopes is much better timing.
