OYO's parent PRISM nearly halves its IPO fresh issue to ₹3,350 crore

PRISM, the parent company of hotel platform OYO, plans to raise much less money in its upcoming IPO than it first planned. And the reason is a good one.

Smaller issue, stronger business

According to sources, PRISM wants to cut the fresh issue part of its IPO to about ₹3,350 crore, down from nearly ₹6,650 crore. A fresh issue is new money that goes to the company.

The cut comes because the business is generating more cash and its balance sheet has improved, so it simply needs less outside money.

The numbers behind it

OYO's EBITDA (earnings before interest, tax, depreciation and amortisation) more than doubled in FY26 to ₹2,630 crore, from ₹1,080 crore in FY25.

Where the money will go

A large part of the IPO money is expected to be used to repay debt. The company aims to clear its remaining debt from its own business cash flows over the next two to three years.

Ratings agency Moody's has also changed its outlook on PRISM to "positive" from "stable", and kept its B2 rating.

Why it matters

OYO was founded in 2013 by Ritesh Agarwal and went through some tough years. A company that asks for less money because it is earning more is a strong signal to investors, and a useful lesson for founders: a healthier business gives you more control over how much you raise.

Source: YourStory, original post on Instagram