Prism Life (PRISM), the parent company of OYO, has taken a major step towards entering the public markets after receiving shareholder approval to raise up to Rs 6,650 crore through an Initial Public Offering (IPO). The approval was granted during an Extraordinary General Meeting (EGM), marking a crucial milestone in the company’s long-pending IPO journey and strengthening its plans to list on Indian stock exchanges.
The move signals renewed confidence in PRISM’s business fundamentals and growth outlook, especially after the company reported improved financial performance over the past year.
Shareholder Approval Clears a Key IPO Hurdle
At the EGM, PRISM’s shareholders passed a special resolution allowing the company to raise fresh capital through the issuance of equity shares. The approval gives the company the flexibility to tap public markets at an appropriate time, depending on regulatory clearances and overall market conditions.
Alongside the IPO approval, shareholders also cleared a bonus share issue in the ratio of 1:19, meaning existing shareholders will receive 19 additional equity shares for every share held. This move is aimed at increasing liquidity and making the stock more accessible once the company lists.
Long Road to the Public Markets
PRISM’s IPO plans have gone through several delays in the past due to market volatility, regulatory processes, and internal restructuring. Earlier known as Oravel Stays, the company rebranded itself as PRISM to reflect a broader corporate identity beyond its flagship OYO brand.
Founded by Ritesh Agarwal, OYO has evolved from a budget hotel aggregator into a global hospitality technology platform, working with hotels, homeowners, and commercial property owners across multiple markets.
Over the last few years, PRISM has focused on improving governance, simplifying its structure, and strengthening its balance sheet — all seen as essential steps before approaching public investors.
Improving Financial Performance Boosts Confidence
PRISM’s recent financial performance has played a key role in reviving its IPO ambitions. The company has reported steady growth in revenue along with a notable improvement in profitability.
In the latest financial year, PRISM posted revenue of over Rs 6,200 crore, registering double-digit year-on-year growth. More importantly, the company remained profitable, reporting a net profit that highlighted improved cost control and operational efficiency. Quarterly results also showed strong growth in gross booking value, indicating higher demand across its hospitality portfolio.
This turnaround has helped rebuild investor confidence in the company’s business model and long-term sustainability.
What the IPO Could Mean for PRISM and OYO
The proposed IPO is expected to primarily consist of a fresh issue of shares, which would allow PRISM to raise growth capital rather than provide an exit to existing investors. The funds raised could be used to strengthen technology platforms, expand into new markets, improve hotel partner offerings, and enhance customer experience.
While an official IPO timeline has not been disclosed yet, the shareholder approval clears the way for PRISM to move forward with regulatory filings with the Securities and Exchange Board of India when market conditions are favourable.
A Key Moment for India’s Startup Ecosystem
PRISM’s IPO plans are being closely watched across India’s startup and investor community. A successful listing could position OYO among the few large Indian consumer-tech startups to sustain profitability while scaling at a global level.
As the company prepares for its next phase of growth, the shareholder approval marks a defining moment — one that could reshape PRISM’s future as a publicly listed hospitality technology leader.