- Technology-led hospitality major seeks to raise ₹6,650 crore through a pure fresh issue, with marquee investors including SoftBank, Ritesh Agarwal, Microsoft and Airbnb retaining their stakes.
- Nine-month FY26 revenue climbs to ₹6,941 crore, already surpassing FY25, while profit after tax jumps to ₹748 crore and EBITDA more than doubles, underscoring a decisive turnaround.
- IPO proceeds to be primarily deployed towards debt reduction, positioning PRISM for a stronger balance sheet and accelerated expansion across India, North America and Europe.
- US business powered by the G6 Hospitality acquisition emerges as the company’s largest growth engine, while India’s company-serviced hotel portfolio and Europe holiday-home platform scale up rapidly.
- Positive S&P Global Ratings outlook and a favourable ITAT ruling removing a ₹3,885-crore tax overhang further strengthen investor confidence ahead of the proposed public listing.
NE BUSINESS BUREAU
MUMBAI, JULY 2
PRISM, the global hospitality technology company and parent of OYO, has taken a decisive step towards the capital markets by filing its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the Securities and Exchange Board of India (SEBI) for a proposed ₹6,650-crore Initial Public Offering (IPO), backed by robust earnings growth, expanding global operations and a strengthened financial outlook.
The proposed IPO comprises an entirely fresh issue of equity shares worth up to ₹6,650 crore, with no Offer for Sale (OFS) by existing shareholders, signalling strong confidence among the company’s long-term investors. PRISM may also undertake a pre-IPO placement of up to ₹1,330 crore, which, if completed, will proportionately reduce the size of the fresh issue.
The company plans to utilise ₹4,987.5 crore from the net proceeds towards repayment or prepayment of borrowings, while the remaining funds will be earmarked for general corporate purposes. The equity shares are proposed to be listed on both the NSE and the BSE.
Notably, leading shareholders—including SoftBank’s SVF India Holdings, founder Ritesh Agarwal and RA Hospitality Holdings, Microsoft, Airbnb, Khazanah, A1 Holdings, Star Virtue Investment, Global Ivy Ventures, Lightspeed, Greenoaks Capital and Peak XV—are not divesting any shares through the proposed public issue.
Positioning itself as a technology-driven global hospitality platform, PRISM has evolved into a diversified multi-brand ecosystem spanning hotels, vacation homes, extended-stay properties and digital accommodation listings across more than 35 countries. The company’s “India for the World” strategy combines a unified technology platform with market-specific customer experiences and local supply partnerships.
The financial performance outlined in the filing highlights a sharp acceleration in growth and profitability.
For the nine months ended December 31, 2025 (9MFY26), PRISM reported revenue from operations of ₹6,941 crore, already 11 per cent higher than its full-year FY25 revenue of ₹6,259 crore.
Profit after tax surged to ₹748 crore during the nine-month period, compared with ₹245 crore for the entire FY25, reflecting a substantial improvement in operating performance.
The company’s EBITDA rose to ₹2,127 crore, more than doubling from ₹953 crore recorded in FY25. EBITDA, excluding exceptional items, share-based payments and other income, stood at ₹1,968 crore, representing an 80 per cent increase over the full-year FY25 figure of ₹1,095 crore.
As of December 31, 2025, PRISM’s global footprint comprised 24,303 hotels, 124,668 homes and 144,583 listings, including 14,937 storefronts in India. Since its inception in 2012, the platform has served 119.36 million unique customers, with nearly 68 per cent of demand generated directly through its own digital ecosystem.
India continues to remain a strategic growth market, particularly through the company’s rapidly expanding company-serviced hotel model, where PRISM directly manages or leases hotels to ensure superior operational standards and customer experience.
The number of company-serviced hotel storefronts in India increased to 1,573 by December 2025 from 1,053 in March 2025. Gross Booking Value (GBV) from this segment reached ₹1,346.45 crore during 9MFY26—around 65 per cent higher than the entire FY25 figure—accounting for nearly half of PRISM’s India GBV. The portfolio includes premium brands such as Sunday, Palette, Clubhouse, Townhouse and Townhouse Oak.
Internationally, PRISM’s acquisition of G6 Hospitality, owner of the iconic Motel 6 and Studio 6 brands, has transformed its North American business into the company’s largest revenue engine.
The US business generated ₹12,022.51 crore in GBV during 9MFY26, representing an impressive 155 per cent increase over FY25. North America contributed 52.39 per cent of the company’s global GBV, while the acquisition also introduced a stable royalty- and franchise-driven revenue stream.
In Europe, PRISM continued to strengthen its holiday-home business through brands including Belvilla, DanCenter and CheckMyGuest. The number of homes and listings expanded to 269,251 from 208,901 within nine months. Despite this rapid expansion, the company estimates that it still commands less than one per cent of the fragmented European holiday-home market, leaving considerable room for future growth.
PRISM has simultaneously strengthened customer engagement through its direct booking ecosystem spanning mobile applications, websites, corporate channels, travel partners, call centres and walk-ins. During 9MFY26, 67.6 per cent of bookings originated through direct-to-consumer channels, while 61.8 per cent represented repeat customers.
Its loyalty ecosystem has also expanded significantly. As of December 31, 2025, OYO Wizard had 19.07 million members, while My6 had 7.4 million members, taking the combined loyalty base to 26.4 million. In India alone, OYO Wizard had 16.7 million subscribers, making it the country’s largest loyalty programme by membership among leading travel brands.
Further boosting investor confidence, S&P Global Ratings recently revised PRISM’s outlook to Positive from Stable, while affirming its ‘B’ issuer credit rating, citing sustained profitability, stronger cash generation and the expected balance-sheet improvement following the proposed IPO.
The ratings agency noted that PRISM has maintained consistent operating momentum, with EBITDA growing at a compound annual rate of more than 45 per cent between FY24 and FY26, and projected operating margins to approach 30 per cent in the coming years as scale, operational efficiencies and premiumisation continue to strengthen the business.
In another significant development ahead of the IPO, the Delhi Bench of the Income Tax Appellate Tribunal (ITAT) quashed a ₹3,885-crore tax demand raised against PRISM under the erstwhile Angel Tax provisions. The Tribunal ruled that share premium received through compulsorily convertible preference shares issued to its parent company could not be treated as taxable income, observing that the valuation had been conducted by RBI-approved valuers using accepted methodologies.
The ruling removes a major legal overhang ahead of the public issue while establishing an important precedent for startups that had faced similar tax disputes under the now-repealed Angel Tax regime.
