Summary:
- PRISM secured shareholder approval to raise $742M in its IPO.
- Shareholders approved pursuing an IPO without a set timeline.
- The company first filed for a $12B IPO in 2021.
PRISM, OYO HOTELS’ parent company, received shareholder approval to raise up to $742.04 million through a fresh issue of equity shares as part of its proposed initial public offering, according to a regulatory filing on Tuesday. The approvals clear the way for the IPO, which has been under preparation for some time.
The approval was granted at a shareholders’ meeting on Saturday, where investors backed the proposal to pursue an IPO without setting a timeline, giving the company flexibility to tap public markets, according to Reuters.
The budget hotel aggregator first filed for an IPO in 2021, seeking a valuation of up to $12 billion. It revived listing plans in March 2023 through a confidential filing with the market regulator, then postponed the issue again in May, opting to raise debt instead.
The development comes months after Oyo shelved its third IPO attempt following opposition from its largest shareholder, SoftBank. SoftBank’s Vision Fund holds a larger stake in Oyo than founder Ritesh Agarwal’s 30 percent holding. The company was most recently targeting a public listing by March 2026 at a valuation of about $7 billion, according to media reports.
"The global hospitality industry continues to present strong growth prospects, driven by rising travel demand, evolving consumer preferences and increasing digital adoption," Agarwal told shareholders in a recent email, according to Business Standard.
"As we look ahead, our focus extends beyond just growing top-line and bottom-line metrics—we are committed to delivering exceptional customer experiences, leveraging data-driven insights to innovate and expanding our footprint across new geographies and market segments,” he said. “This holistic approach positions us to capitalise on long-term opportunities and build a sustainable, agile and resilient business that adapts to changing industry dynamics.”
Agarwal also chairs G6 Hospitality, parent of Motel 6 and Studio 6. He and G6 CEO Sonal Sinha previously spoke with Asian Hospitality on leadership and performance.
According to provisional quarterly accounts, the company estimated a net profit of more than $2.41 million in the first quarter of fiscal year 2025, more than double the $1.05 million recorded in the same quarter of the previous fiscal year, Business Standard reported. In fiscal year 2025, the company turned profitable with an operating profit of $4.96 million, while gross booking value grew 53 percent to $195.78 million.
Revenue during fiscal year 2025 reached $75.3 million, with the global hotel count rising to 20,000.
In November, PRISM announced plans to introduce a simplified bonus structure covering all shareholders, including equity and CCPS holders, regardless of holding size. The company withdrew its previous board resolution to present a unified proposal for approval.
