OYO parent PRISM gets shareholder nod for Rs 6,650-crore IPO

PRISM, the parent company of travel platform OYO, has received shareholder approval to raise up to Rs 6,650 crore through a fresh issue of equity shares as part of a proposed initial public offering, clearing a key procedural step toward a market listing, PTI news agency mentioned in its report.

Shareholders approved the plan at an extraordinary general meeting held on December 20, giving the company flexibility to tap public markets at a time of its choosing, subject to regulatory clearances and market conditions.

The approval follows a corporate rebranding announced in September, when OYO renamed its parent entity from Oravel Stays to PRISM, a move intended to consolidate the group’s expanding portfolio of businesses under a single corporate identity. While PRISM will serve as the holding company, OYO will continue as the flagship consumer brand in the budget and midscale travel segments.

The IPO plan comes against the backdrop of improving financial performance. In fiscal year 2025, OYO reported higher revenue and profit, aided by increased marketing spending and a sharp rise in deferred tax gains.

Net profit rose to Rs 244.8 crore in FY25 from Rs 229.6 crore a year earlier, supported by a deferred tax gain of Rs 765.6 crore, compared with Rs 51.3 crore in FY24. Operating revenue increased 16 per cent year-on-year to Rs 6,253 crore, up from Rs 5,388 crore.

The company sharply stepped up promotional activity during the year. Advertising expenses surged 155 per cent, , rising from Rs 66.5 crore in FY24 to Rs 170 crore in FY25.