OYO’s IPO Hinges On One Trade-Off: Profitability Vs Debt

After years of delays, OYO is returning to the public markets as a profitable global hospitality platform. But its huge debt obligations cloud the PRISM IPO prospects

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OYO’s IPO became synonymous with highs and lows in India’s startup ecosystem. Every high point in the past four years saw OYO announce plans for an IPO, just to walk it back when things got rough. 

The company first filed its draft prospectus in 2021, hoping to become one of India’s largest new-age technology listings at a valuation north of $9 Bn amidst a wave of new-age firm listings including that of Eternal, Nykaa and Paytm. 

It withdrew the papers following SEBI’s queries and tech stock correction.

OYO tried again through the confidential filing route in 2023, only to withdraw its IPO papers in May 2024, citing weak market sentiment and an ongoing debt refinancing that would have materially altered its financials.

Today, OYO or PRISM is back but it is returning as a very different business. And this time around it doesn’t matter what the markets are like because unlike previously PRISM has profits on its side. 

Today, OYO or PRISM is back but it is returning as a very different business. And this time around it doesn’t matter what the markets are like because unlike previously PRISM has profits on its side. 

The parent company, Oravel Stays Ltd, has filed an Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for a fresh issue of ₹6,650 Cr, with no existing shareholders selling any stake in the offering. 

The company rebranded to PRISM in September 2025 to reflect a business that now spans 43 brands........

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