Prism, the parent company of travel technology unicorn Oyo, has received approval from the Securities and Exchange Board of India (Sebi) for its proposed initial public offering (IPO), marking a significant milestone in the company's long-awaited stock market debut.

According to people familiar with the development, Prism plans to raise up to ₹6,650 crore through a fresh issue of equity shares, with the offering expected to value the company at approximately $7-8 billion.

The company had confidentially filed its draft red herring prospectus (DRHP) with Sebi in December 2025, opting for the regulator's confidential pre-filing route. The filing came after shareholders approved the fundraising proposal at an Extraordinary General Meeting (EGM) held on December 20, 2025.

As part of the next phase of the listing process, Prism is expected to file an Updated Draft Red Herring Prospectus (UDRHP-1) in early July. The document will be made public and remain open for comments for 21 days before the company proceeds further with its IPO plans.

Sources said the company is closely monitoring market conditions and broader investor sentiment before finalising its listing timeline.

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Oyo's public market journey

The regulatory approval represents a major breakthrough for Oyo founder Ritesh Agarwal, whose company has attempted to go public multiple times in recent years but delayed plans amid challenging market conditions and volatility in technology stocks.

This time, the company has approached the market with a stronger focus on profitability and operational efficiency.

Over the past year, Prism has expanded its presence across key international markets, including India, the United States, and Europe, while increasing its focus on premium hospitality offerings. The company has strengthened brands such as Sunday Hotels and Palette Hotels and expanded its self-operated hotel portfolio.

Prism has also diversified its business through its European vacation rental brand DanCenter, which recently entered India with villa offerings in Goa. The company has additionally expanded in religious tourism destinations to capitalize on rising demand for spiritual travel.

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Financial outlook

The company's listing ambitions have been supported by improving financial performance. Recently, credit rating agency Moody's reaffirmed Prism's B2 corporate family rating with a stable outlook.

Moody's expects the company's EBITDA to more than double to approximately $280 million (around ₹2,496 crore) in FY26, driven by contributions from the G6 Hospitality acquisition, growth in premium hotel offerings, and ongoing cost optimization initiatives.

Prism has also strengthened its corporate governance framework by appointing former Sebi Chairman Ajay Tyagi as an independent director.

New-age tech IPOs

If completed, the Prism IPO would rank among the largest listings by a new-age technology company in India. The proposed offering comes at a time when several internet and technology companies have been reassessing listing timelines amid market volatility.

While firms such as Flipkart and PhonePe have reportedly delayed IPO plans, companies including Manipal Health and SBI Funds Management continue to move ahead with public market ambitions. Investors are also closely watching potential listings from Zepto, the National Stock Exchange, and Reliance Jio.

For Oyo, Sebi's approval marks a crucial step toward achieving a public listing and providing investors an opportunity to participate in the next phase of the company's growth journey.

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