Restaurant India News: OYO Parent Prism Hotels Gets Sebi Approval for Rs 6,650-Crore IPO

Prism Hotels and Resorts, the parent company of OYO, has secured approval from the Securities and Exchange Board of India (Sebi) for its proposed initial public offering (IPO), according to people familiar with the matter.

The regulatory clearance marks a significant step in the hospitality company's renewed efforts to enter the public markets after several previous listing attempts.

The company had confidentially filed draft papers in December for a proposed Rs 6,650-crore IPO through a fresh issue of shares. Prism was reportedly seeking a valuation of approximately $7-8 billion, lower than the nearly $12 billion valuation it had pursued during its earlier IPO plans in 2021.

Shareholders had approved the IPO proposal during an extraordinary general meeting held on December 20, 2025. Following Sebi's approval, the company is expected to submit an updated draft red herring prospectus (UDRHP) in early June. The document will be made public and remain open for public comments for 21 days. Sources indicated that Prism is currently assessing market conditions and broader listing timelines before proceeding with the next phase of the public issue.

The proposed listing comes at a time when Prism continues to focus on improving profitability while strengthening its footprint across India, the US and Europe. The company has also expanded its premium hotel portfolio and is integrating G6 Hospitality, the US motel chain it acquired last year.

The IPO will be managed by a consortium of book-running lead managers, including Axis Capital, Citigroup, Goldman Sachs, ICICI Securities, SBI Capital Markets, JM Financial, InCred Capital and Intensive Fiscal Services.

In a recent governance-related development, Prism appointed former Sebi chairman Ajay Tyagi as an independent director on its board. Meanwhile, ratings agency Moody's reaffirmed the company's B2 corporate family rating with a stable outlook. The agency stated that it expects Prism's EBITDA to more than double in FY26, driven by contributions from the G6 Hospitality acquisition, growth in premium hotel offerings and continued cost optimisation.

Industry sources said the company is continuing to monitor market conditions before finalising the timing of its public issue, which is expected to be one of the closely watched hospitality sector listings in the coming months.