Published: [October 21, 2026]
StartupFeed Quick Take
- The OYO IPO fresh issue may drop to Rs 3,350 Cr from Rs 6,650 Cr, a cut of Rs 3,300 Cr
- The June 29 filing set aside Rs 4,987.5 Cr to repay debt, which is Rs 1,637.5 Cr more than the new size
- Nothing has been filed yet. The smaller number must appear in the red herring prospectus
PRISM, the parent of OYO, plans to nearly halve the fresh issue in its proposed IPO to Rs 3,350 crore, PTI reported on October 20.
The number on file is still Rs 6,650 crore. It sits in the updated draft prospectus PRISM lodged with Sebi on June 29, 2026. The cut, if it happens, is Rs 3,300 crore.
That is a fall of 49.6%. PRISM has not filed the smaller figure anywhere. Stronger cash and a better balance sheet have cut how much new money the business needs.
What the OYO IPO Filing Still Says
That filing asks for Rs 6,650 crore, all of it new shares. No existing owner sells a single share in the offer.
Rs 4,987.5 crore of that money was set aside to repay loans or pay them down early. It goes first into Oravel Stays Singapore, a company PRISM owns fully, which carries the debt.
The filing also allows a private share sale of up to Rs 1,330 crore before the red herring prospectus is filed. If that sale happens, the fresh issue drops by the same amount.
SoftBank’s SVF India Holdings, founder Ritesh Agarwal, RA Hospitality Holdings, Microsoft, Airbnb, Khazanah, Lightspeed, Greenoaks Capital and Peak XV Partners all keep their stakes.
The New Size Does Not Cover the Debt Plan
Rs 3,350 crore is Rs 1,637.5 crore less than the debt line. The smaller issue cannot clear the loans that money was meant for.
The private sale does not explain the gap. A full Rs 1,330 crore placement would still leave a fresh issue of Rs 5,320 crore. The plan is to repay the rest from cash the business earns, over two to three years.
| Item | Filed on June 29, 2026 | Reported plan, October 20 |
|---|---|---|
| Fresh issue | Rs 6,650 Cr | Up to Rs 3,350 Cr |
| Set aside to repay debt | Rs 4,987.5 Cr | Not stated |
| Private sale before the RHP | Up to Rs 1,330 Cr | Not stated |
| Gap against the debt plan | None | Rs 1,637.5 Cr short |
Moody’s Ratings moved its outlook on PRISM to positive from stable on October 18, two days before the issue size news broke. It kept the B2 corporate family rating. The agency expects EBITDA near Rs 3,000 crore over the next 12 to 18 months.
Sweta Patodia, an assistant vice president at Moody’s Ratings, put it this way:
“The positive outlook reflects our expectation that Oyo will sustain stronger earnings”
Sweta Patodia, assistant vice president, Moody’s Ratings. From the Moody’s statement on PRISM, October 18, 2026.
Why the Number Moved
OYO’s EBITDA more than doubled in FY26 to Rs 2,630 crore from Rs 1,080 crore in FY25. That is a rise of 143.5%. EBITDA means earnings before interest, taxes, depreciation and amortisation.
Revenue from operations for the nine months to December 31, 2025 was Rs 6,941 crore. Full-year FY25 revenue was Rs 6,259 crore. Nine months beat twelve.
The United States business now leads growth. The G6 Hospitality deal brought in the Motel 6 and Studio 6 chains.
PRISM runs 43 brands in more than 35 countries. Each share has a face value of Rs 1.
What Has to Happen Next
The red herring prospectus will carry the final size. Until that document is filed with the RoC, Rs 6,650 crore stays the only number on record.
This is PRISM’s third run at the market. The first, in 2021, asked for Rs 8,430 crore. The second, in 2023, went nowhere.
PRISM pre-filed its draft through the confidential route on December 30, 2025. Shareholders had cleared a raise of up to Rs 6,650 crore at a meeting on December 20, 2025. Sebi cleared the offer in June 2026.
Eight banks are running the issue, among them Axis Capital, Citigroup, Goldman Sachs, ICICI Securities, SBI Capital Markets and JM Financial.
Oravel Stays Limited is the company’s legal name, and the business was first set up in New Delhi. It took the PRISM name in September 2025.
What this means for you: If you hold unlisted PRISM shares or plan to apply in the OYO IPO, a smaller fresh issue means less new stock and less dilution. Wait for the red herring prospectus before you size any bid, because Rs 6,650 crore is still the only filed number.
StartupFeed Insight
The gap is the story. At Rs 3,350 crore the issue no longer covers the Rs 4,987.5 crore the filing set aside for debt. PRISM is telling the market it will pay the rest from its own cash, over two to three years. That is a confidence signal, and it is also a risk the buyer now carries. Watch two things. First, whether a private placement of up to Rs 1,330 crore is announced before the red herring prospectus. Second, the final size in that document. My call: the filed figure changes before the end of January 2027.
By Saraswati Chaubey, Writer
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Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.
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