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In a significant endorsement ahead of its planned public listing, S&P Global Ratings has revised the outlook on OYO parent company PRISM (formerly Oravel Stays) from Stable to Positive, while reaffirming its 'B' issuer credit rating.
The rating agency cited PRISM's improving earnings trajectory, strengthening credit profile, and the expected benefits of its upcoming IPO as key reasons behind the outlook upgrade. According to S&P, the company's credit metrics could improve substantially over the next 12 months if it sustains its operating momentum and successfully completes the IPO.
A successful public offering is expected to significantly strengthen PRISM's capital structure. S&P noted that the company's CCPS and CCCPS instruments, currently treated as debt-like obligations, will convert into equity upon listing, reducing leverage and improving financial flexibility. Additional strengthening could occur if IPO proceeds are utilized for debt repayment.
The development comes shortly after PRISM received SEBI approval for its proposed IPO, which is expected to raise up to ₹6,650 crore and could value the company at approximately $7–8 billion.
S&P also highlighted the company's strong growth outlook, projecting revenue to exceed ₹9,200 crore (over $1 billion) in FY26, supported by the full integration of G6 Hospitality (Motel 6), premiumization initiatives, and continued expansion across key markets. Revenue is expected to grow further in FY27 through new asset additions and healthy same-store growth.
The positive outlook from a global rating agency adds further credibility to PRISM's IPO journey and reflects growing confidence in OYO's transformation into a more profitable and scalable hospitality platform.
Source: https://economictimes.indiatimes.com/markets/ipos/fpos/sp-global-revises-ipo-bound-oyo-parent-prisms-outlook-to-positive/articleshow/131636957.cms?from=mdr
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