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OYO is reportedly set to receive final approval from the Securities and Exchange Board of India (SEBI) for its much-awaited initial public offering (IPO) this week, marking a major milestone in the company’s long-running journey toward public markets.
According to reports, the IPO size has now been reduced to nearly ₹6,500 crore from earlier estimates of around ₹8,400 crore. The company is targeting a stock market listing in the second half of 2026 as it looks to capitalize on improving market conditions and stronger operational performance.
The hospitality platform, led by founder Ritesh Agarwal, had confidentially filed draft papers with SEBI through its parent entity, PRISM, after receiving shareholder approval to raise up to ₹6,650 crore via a fresh issue of equity shares.
OYO had initially begun its IPO process in 2021 but later withdrew the proposal amid global market volatility and weaker investor sentiment following the Russia-Ukraine conflict. Since then, the company has focused on strengthening profitability, expanding internationally, and optimizing operations.
Over the last few years, OYO has significantly expanded its premium and mid-market hospitality portfolio through brands such as SUNDAY Hotels and Palette. The company also strengthened its global presence with the acquisition of G6 Hospitality, the operator and franchisor of Motel 6 and Studio 6 in the United States economy lodging segment.
The confidential filing route adopted by OYO allows companies to engage privately with regulators before publicly releasing offer documents. This mechanism gives issuers greater flexibility regarding timing, disclosures, and market testing before launching the IPO.
Ahead of the proposed listing, OYO also undertook multiple corporate restructuring and shareholder initiatives, including bonus share issuances in 2025, aimed at improving capital structure and enhancing investor participation.
The company’s improving financial outlook has also gained support from global rating agencies. Moody’s recently reaffirmed PRISM’s B2 corporate family rating with a stable outlook and projected that the company’s EBITDA could more than double to nearly ₹2,500 crore in FY26, supported by international expansion, premiumization, and cost optimization initiatives.
OYO’s upcoming IPO is expected to be among the most closely watched public offerings in India’s startup ecosystem, especially as investor sentiment toward new-age technology and consumer internet companies gradually improves.
Source: https://www.ndtvprofit.com/markets/oyo-parent-set-to-receive-final-sebi-nod-this-week-ipo-size-cut-to-rs-6-500-crore-11477931
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