Breaking Update: Here’s a clear explanation of the latest developments related to Breaking News:Oyo parent Prism makes confidential filing for IPO– What Just Happened and why it matters right now.
The company had in December secured shareholders’ approval to raise up to Rs 6,650 crore (around $740 million) in primary capital via an IPO.
Prism filed the draft red herring prospectus under the confidential route, the people said. This will allow the company to keep details of the plan private and give it the option to change the proposals at a later stage.
The stock market regulator returned its first IPO application in 2021, asking the company to refile with updated numbers. Following this, it made a revised filing for a significantly smaller issue. The Gurugram-based company had originally proposed a $1.2 billion issue, but its revised confidential filing was for a 40-60% smaller IPO.
In 2024, the company withdrew its draft prospectus and opted for a private funding round instead.
Oyo did not respond to queries till the time of going to press Wednesday.
“Oyo will likely target a valuation of around $5-7 billion,” one of the people cited above said, adding that the final size could change depending on market conditions. In 2021, when the company filed to go public the first time, it was aiming for a $12 billion valuation.
With this, Oyo joins a list of new-age companies including PhonePe, Zepto, Boat, Shadowfax and Shiprocket which have made their filings with Sebi for a potential listing in 2026. Ecommerce giant Flipkart is also planning to go public in 2026 and is in the process of finalising moving its registered office to India.
Oyo recorded a net profit of more than Rs 200 crore for the April-June 2025 quarter, ET had reported, citing an email from founder and chief executive Ritesh Agarwal to the company’s management committee and shareholders sent in September. As per the email, Oyo’s profit more than doubled year-on-year, rising from Rs 87 crore in the first quarter of the previous fiscal year.
According to the email, the company’s revenue grew 47% to Rs 2,019 crore in the quarter.
Its gross booking value reached Rs 7,227 crore in the quarter, marking a 144% year-on-year increase. Agarwal had said this was driven by both hotel openings and double-digit same-store growth, premiumisation and improved room utilisation.
In 2024, Oyo raised capital at a valuation of $2.3 billion, compared with its peak valuation of $9 billion during a 2021 funding from Microsoft.
The company has been increasing its presence in overseas markets through inorganic expansion. It acquired G6 Hospitality, which runs the Motel 6 chain in the US, in 2024 for $525 million.