Oyo's parent company, Prism Hotels and Resorts, has filed its updated draft red herring prospectus (UDRHP) with SEBI, marking a major step toward its planned initial public offering (IPO). The proposed IPO consists entirely of a fresh issue of equity shares worth up to ₹6,650 crore, with no offer for sale by existing investors. The company may also raise up to ₹1,330 crore through a pre-IPO placement, which would reduce the size of the fresh issue if completed.

Prism recently received SEBI's approval for the offering after confidentially filing its draft papers in December 2025. The company is reportedly targeting a valuation of $7–8 billion, lower than its earlier target of around $12 billion in 2021. Most of the IPO proceeds, about ₹4,987.5 crore, will be used to repay debt, while the remaining funds will support general corporate purposes.

The company reported strong financial performance for the first nine months of FY26, with revenue rising 11% year-on-year to ₹6,941 crore and net profit surging to ₹748 crore from ₹245 crore a year earlier. EBITDA also more than doubled to ₹2,127 crore. As of December 2025, Prism operated over 243,000 hotels and 144,000 homes globally, while continuing to expand its company-serviced hotel network in India.