OYO IPO update 2026: Confidential SEBI filing, ₹6,650 cr plan, valuation & timeline explained

Prism, which is the parent company of the hospitality giant OYO, has supposedly submitted confidential initial papers to the Securities and Exchange Board of India (SEBI) as its third attempt to enter the Indian public markets through its IPO. The following is a breakdown of the confidential filing of OYO, the valuations, and what investors should expect when it launches an IPO in 2026.

The confidential filing and its significance

The parent company of OYO, PRISM, filed its Draft Red Herring Prospectus (DRHP) confidentially with the SEBI at the end of 2025. ​It is a secret filing whereby companies submit the draft IPO papers to SEBI to review without making public disclosures until they make the decision to proceed with the offering. ​

This model offers timing flexibility and minimises market scrutiny with regard to the regulatory review process, which is a strategy utilised by new-age businesses like Meesho, Swiggy, and Tata Play.

The decision to raise capital was approved by the shareholders of PRISM at an extraordinary general meeting on December 20, 2025. ​This is the third attempt by OYO to enter the IPO, as it had previously attempted in 2021and 2023, but withdrew both attempts because of market dynamics and global uncertainty.

IPO size and valuation

Though the date and price band of the IPO are not publicly announced, the company is expected to be listed on the stock market in 2026. The company led by Ritesh Agarwal aims to raise a capital of ₹6,650 crore ($800 million) in this IPO, which is a fresh new issue of equity shares, with no offer to sell shares. The OYO is aiming for a valuation of $7-8 billion, which is approximately ₹58,000–66,500 crore in its IPO.

The decision to structure the offering as a pure fresh issue indicates that the management will use the capital to expand its business, reduce the debt, finance the working capital needs, and undertake strategic business initiatives instead of providing liquidity to the initial investors.

In the beginning, the company had appointed Goldman Sachs, ICICI Securities, Axis Capital, and Citibank as book-running lead managers for the IPO offering. However, the company has thereafter increased its banking syndicate, adding more advisors to enhance the distribution ability and access more investors.

In 2021, PRISM had previously submitted an IPO but withdrew the offering later that year because of market volatility and the Russian-Ukrainian conflict. Since then, PRISM has grown both domestically and internationally, by introducing new brands to its premium portfolio, such as SUNDAY Hotels and Palette, as well as acquiring US-based G6 Hospitality that operates Motel 6 and Studio 6.

OYO business model

OYO was founded by Ritesh Agarwal in 2013 as an asset-light, technology-enabled hospitality platform, ​ with a global presence in over 40 countries. ​The company has served over 100 million guests and manages more than 1 million rooms across hotels, homes, and rentals in core markets like India, Southeast Asia, Europe, and North America.

​The company has undergone a business model reset, shifting to a franchise-led, asset-light expansion focusing on premium and mid-scale brands, improved partner contracts, and technology-driven for demand, pricing, and cost optimisation. ​This reset has led to improved operating leverage, reduced capital intensity, and a profit-led operating model, with recent quarters delivering consistent profits.

What does the financial performance say?

​For the financial year 2025, OYO reported a 16% year-on-year revenue increase to 62.53 billion rupees with net profit after exceptional items rising by 6.6% to 2.45 billion rupees. ​The company also reported a strong start to FY26, with a FY26Q1 net profit of over ₹200 crore, revenue increasing 47% year-on-year to ₹2,019 crore, and gross booking value jumping 144% to ₹7,227 crore. 

Moody anticipates that EBITDA will increase over double to approximately $280 million in FY26.

Why does this IPO matter?

OYO  is one of India’s most well-known hospitality and travel-tech brands, boasting a global and domestic presence of thousands of hotels. Therefore, a successful IPO of OYO could:

• Unlock significant liquidity for early financiers like SoftBank and international institutional sponsors.
• Increase the brand presence and long-term funding of PRISM.
• Establish a precedent for other tech and travel-related IPOs.
• Enhance the involvement of retail investors in the Indian travel tech industry.

With India’s primary market already buzzing with activity, a record IPO pipeline is under preparation for 2026. OYO’s listing could act as a catalyst, boosting broader confidence in high-growth, tech-enabled companies entering the public markets. 

The bottom line

For OYO, 2026 is a redemption year. After withdrawing its papers twice, this third attempt seems more rooted in stronger fundamentals than hype. In 2026, the listing of OYO could be a high point, unlocking newer opportunities for retail and institutional participation in the modern capital markets of the country.