We observe a decisive shift in India’s capital markets as PRISM, the parent company of OYO, confidentially files draft IPO papers with the Securities and Exchange Board of India (SEBI). This move signals renewed confidence from one of the country’s most prominent hospitality platforms, following a prolonged period of restructuring, profitability improvement, and international expansion.

The confidential filing, approved by shareholders at an Extraordinary General Meeting on December 20, enables PRISM to raise up to Rs 6,650 crore through a fresh issue of equity shares. Market participants estimate the proposed listing could value the company between $7 billion and $8 billion, positioning it among the most significant new-age IPOs in the near-term pipeline.

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We note that the confidential pre-filing mechanism has emerged as a preferred pathway for mature technology and consumer-facing companies. This structure allows issuers to engage with regulators discreetly, refine disclosures, and time market entry strategically without immediate public scrutiny.

For PRISM, this route offers critical flexibility. The company previously entered the IPO process in 2021, filing draft offer documents and later submitting a revised prospectus reflecting updated financials. However, persistent global macroeconomic uncertainty, tightening liquidity, and equity market volatility prompted a withdrawal of the offering. The current confidential filing underscores a more measured, institutionally aligned approach.

We have seen PRISM undergo a marked transformation over the past several years. Once viewed primarily as a high-growth, cash-burning hospitality aggregator, the company has recalibrated its strategy toward profitability, operational efficiency, and premiumisation.

A central pillar of this shift has been the expansion of its premium and mid-scale hotel portfolio. Brands such as SUNDAY Hotels and Palette have enabled PRISM to capture higher average room rates, improve unit economics, and attract a more diversified customer base. This repositioning reduces reliance on budget accommodations while improving brand perception across key markets.

We consider the acquisition of G6 Hospitality a defining milestone in PRISM’s global strategy. G6, the franchisor of Motel 6 and Studio 6, operates one of the largest economy lodging networks in the United States. This acquisition provides PRISM with immediate scale in North America, recurring franchise-led revenues, and access to a mature hospitality ecosystem.

By integrating G6’s operational expertise with its own technology-driven platform, PRISM strengthens its global footprint while diversifying revenue streams beyond India and emerging markets. The move also mitigates geographic concentration risk and enhances long-term earnings visibility.

We place particular emphasis on PRISM’s improving financial profile. For the quarter ended June 2025 (Q1 FY26), the company reported net profits exceeding Rs 200 crore, alongside revenues of Rs 2,019 crore. This performance marks a notable inflection point, reflecting tighter cost controls, improved asset utilisation, and a more disciplined growth strategy.

Sustained profitability is a critical consideration for public market investors, especially in the post-2022 environment where valuation premiums increasingly favour earnings visibility over aggressive expansion. PRISM’s recent results indicate a business model that has matured beyond its earlier growth-at-all-costs phase.

We understand that PRISM initially appointed ICICI Securities, Axis Capital, Goldman Sachs, and Citibank as book-running lead managers. The subsequent addition of more banks to the syndicate reflects the anticipated scale and complexity of the offering, as well as rising institutional demand.

A diversified syndicate enhances global distribution, supports valuation discovery, and strengthens engagement with long-only funds and sovereign investors. It also signals confidence among investment banks regarding the company’s readiness for public markets.

We expect PRISM’s targeted valuation of $7–8 billion to be closely scrutinised by investors. The valuation narrative rests on multiple pillars: demonstrated profitability, international scale, a diversified brand portfolio, and a technology-led operating model.

Compared to its earlier IPO attempt, PRISM now approaches the market with stronger fundamentals, clearer growth levers, and reduced execution risk. These factors collectively support a more resilient valuation framework, even amid selective investor sentiment.

We anticipate that PRISM will continue refining its operating metrics, balance sheet strength, and disclosure standards as it progresses through the IPO review process. The confidential filing provides room for strategic calibration while preserving optionality around timing.

With profitability restored, global operations consolidated, and premium offerings gaining traction, PRISM enters this phase from a position of relative strength. The company’s ability to sustain margins, integrate acquisitions, and scale responsibly will remain central to investor assessment.