The proposed issuance does not encompass an Offer for Sale (OFS), indicating that none of the current shareholders—including founder Ritesh Agarwal, SoftBank’s SVF India Holdings, Microsoft, Airbnb, Peak XV, Lightspeed, Khazanah, and Greenoaks Capital—will offload shares in connection with the IPO.
PRISM might also pursue a pre-IPO placement of up to ₹1,330 crore prior to filing the Red Herring Prospectus. If this placement is successful, the funds generated will decrease the size of the fresh issuance.
As per the filing, the firm intends to allocate ₹4,987.5 crore from the net proceeds to the repayment or prepayment of debts, with the remainder set aside for general corporate purposes.
This filing follows a notable improvement in the company’s financial results.
For the nine months ending December 31, 2025, PRISM posted operational revenue of ₹6,941 crore, exceeding the overall fiscal year 2025 revenue of ₹6,259 crore. The net profit was recorded at ₹748 crore, an increase from ₹245 crore in fiscal year 2025, while EBITDA more than doubled from ₹953 crore to ₹2,127 crore year-on-year. Adjusted EBITDA, excluding exceptional items, share-based payments, and other income, rose by 80% to ₹1,968 crore.
The company operates 43 brands in over 35 countries, covering hotels, vacation homes, extended-stay properties, and online listings. As of December 31, 2025, its portfolio included 24,303 hotels, 124,668 homes, and 144,583 listings, having catered to more than 119 million unique customers since its inception.
In India, PRISM has expanded its company-serviced hotel portfolio, growing its storefronts from 1,053 in March 2025 to 1,573 by December 2025. The Gross Booking Value (GBV) from these hotels reached ₹1,346 crore during the first nine months of fiscal year 2026, already about 65% higher than the total GBV for fiscal year 2025. Company-serviced hotels constituted nearly half of India’s GBV in that timeframe.
Internationally, the acquisition of G6 Hospitality, which owns the Motel 6 and Studio 6 brands, has become a key growth driver. The US division generated ₹12,022 crore in GBV during the first nine months of fiscal year 2026, representing an increase of around 155% over the full fiscal year 2025 amount, contributing over 52% of the company’s global GBV.
The European market also saw growth, with homes and listings rising to 269,251 from 208,901 at the conclusion of fiscal year 2025. Despite this growth, the company indicated that it has captured less than 1% of the fragmented European homes market.
The filing also highlights enhanced customer engagement metrics. Nearly 67.6% of stays originated from direct booking channels, while repeat demand accounted for 61.8%. PRISM’s loyalty program now boasts 26.4 million members, including 19.07 million OYO Wizard members and 7.4 million My6 members.
Additionally, S&P Global Ratings has upgraded PRISM’s outlook to Positive from Stable, while maintaining its ‘B’ issuer credit rating, citing improved profitability, stronger cash flow generation, and anticipated enhancements to the balance sheet following the proposed IPO.
This filing also follows the Delhi bench of the Income Tax Appellate Tribunal (ITAT) revoking a ₹3,885 crore angel tax demand against the company, eliminating a considerable tax burden before the planned listing.
Key risks
While the company has demonstrated a turnaround, the draft prospectus delineates several risks for prospective investors. The company continues to bear substantial borrowings; nearly three-fourths of the IPO proceeds are earmarked for debt repayment. It remains vulnerable to macroeconomic influences and travel demand in significant markets, particularly the US and Europe, which together represent a major portion of its business.
The filing further indicates that this will be the company’s first public offering, with no prior share trading history. Consequently, there is no guarantee of an active post-listing market or the prices at which shares may trade after the listing. Investors are encouraged to thoroughly assess the risk factors specified in the prospectus prior to making investment decisions.
