Oyo-parent PRISM files UDRHP for IPO: Why unlisted shares remain flat despite profitability

Unlisted shares of PRISM, the parent company of Oyo hotels, have remained unfazed in the pre-IPO market even as the company has filed its has filed its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). 

The global hospitality player, formerly known as Oravel Stays, is eyeing to raised upto Rs 6,650 crore. The issue is entirely a fresh issue, with no offer for sale by its shareholders. Besides that the may also consider a pre-IPO placement of up to Rs 1,330 crore before filing the red herring prospectus (RHP), which may adjust the net proceeds from the IPO. The shares shall be listed both NSE and BSE.

According to the dealers from the pre-IPO market, unlisted shares of PRISM (Oyo Hotels) are available in Rs 22-24 range, based on the quantity demanded. The stock were trading around Rs 28-30 earlier this year.  They are expecting price range around the current prices only, or slightly lower than it.

Sandip Ginodia, CEO of Kolkata-based Altius Investec said that PRISM has been turned profit while it is also trying to transform their business from low-cost service provider and aggregator to a high-margin hospitality business player. They moved to multiple international destinations like the US, Dubai, Europe and others with different offerings.

"With the pivot in its business model, the company is moving from volume to value but it will be a big challenge for the company. The customer will be looking at the big value proposition that it offers in comparison to its peers in the same cost as the market is very much competitive globally," he adds.

The filing comes with improved financials, with revenue from operations at Rs 6,941 crore in the first nine months of FY26, above the full-year FY25 figure of Rs 6,259 crore. For the nine months ended December 31, 2025, PRISM reported a profit after tax of Rs 748.34 crore, compared with Rs 244.82 crore in FY25 and ₹229.58 crore in FY24, and against a loss of Rs 1,286.52 crore in FY23. 

Hitesh Dharawat, Co-founder of Mumbai-based boutique firm Dharawat Securities said that the stock has shown nearly no impact of the news as there is enough supply and float in the pre-IPO market. The financials of the company have improved ahead of the IPO but the profitability needs to be consistent over the period in long-run.

"Eternal Ltd (formerly known as Zomato) has been the sole standout winner from the entire tech-enabled new age business pack, rewarding investors in the long-term post listing and as an investor, one needs to understand the business, sector, segment and niche of the company before making a call to part their money," he adds.

PRISM said it will use Rs 4,987.5 crore from the net proceeds to repay or prepay borrowings, with the rest meant for general corporate purposes. Existing shareholders, including its founder Ritesh Agarwal and RA Hospitality Holdings, SoftBank, Microsoft, Airbnb, Khazanah, Lightspeed, Greenoaks Capital and Peak XV, are not selling shares in the issue. 

In the filing, PRISM described itself as a technology-driven hospitality platform with 43 brands across more than 35 countries, spanning hotels, holiday homes, extended-stay properties and listings. As of December 31, 2025, it had 24,303 hotels, 124,668 homes and 144,583 listings, including 14,937 storefronts in India, and said it has served 119.36 million unique customers since 2012.

In India, PRISM has been expanding its company-serviced hotel business, where it has greater operational involvement through leasing or management arrangements. Storefronts in this segment rose to 1,573 by December 31, 2025, from 1,053 on March 31, 2025. It has been scaling this model under brands including Sunday, Palette, Clubhouse, Townhouse and Townhouse Oak.

The US business has become a major driver after the acquisition of G6 Hospitality, which runs Motel 6 and Studio 6 in the US and Canada. In Europe, homes and listings increased to 269,251 from 208,901 over the same period, led by brands such as Belvilla, DanCenter and CheckMyGuest, with the filing saying PRISM still has less than 1 per cent of the European homes market. 

Net leverage has already narrowed from 12.28 times in FY23 to 2.60 times. In June 2026, S&P Global Ratings revised PRISM’s outlook to positive from stable while affirming its ‘B’ issuer credit rating, citing improving profitability and stronger cash generation.