OYO’s parent company, Prism, filed updated draft red herring prospectus papers with SEBI on Tuesday, moving closer to an IPO that aims to raise Rs 6,650 crore through a fresh issue of shares. The filing came after SEBI gave its clearance to the company on June 5, 2026.

The IPO consists entirely of a fresh issue of equity shares. No existing investors — including SoftBank, Microsoft, and Airbnb — will sell any of their holdings through the offering. Prism plans to use Rs 4,987.5 crore of the proceeds to repay or prepay outstanding debt, with the remaining funds going toward general corporate purposes.

What Prism Is and What OYO Is Today

Prism is the rebranded name for Oravel Stays, the company Ritesh Agarwal started as OYO Hotels and Homes. The company has more than 2.55 million subscribers in its global hospitality network and operates across India, Southeast Asia, and Europe through its Sky acquisition. Over the past two years, OYO has focused on cutting its losses and improving unit economics after a period of aggressive and costly expansion.

The company has stabilized its financials enough to attempt an IPO. The valuation being targeted is roughly $7 to $8 billion, well below the $9 billion figure from earlier discussions and far removed from the $12 billion OYO chased in 2021.

What the IPO Timeline Looks Like

After a public comment period of 21 days following SEBI’s observations letter, Prism can finalize the Red Herring Prospectus and open the offer. On current timelines, a listing in the second half of 2026 is realistic, market conditions permitting.

Bloomberg reported the company is targeting approximately $703 million from the offering, roughly Rs 5,957 crore. The gap between this figure and the Rs 6,650 crore in the DRHP likely reflects different assumptions on share price. The final price band won’t be set until the RHP is filed.

The Investor Story

SoftBank’s position in OYO is one of the most watched stories in Indian startup investing. The Japanese conglomerate put billions into OYO at peak valuation and has been waiting for an exit path. The IPO does not include an offer for sale, so SoftBank doesn’t cash out at listing. But a public listing establishes a market price that makes future exits easier.

For Indian retail investors, an OYO IPO will draw considerable attention. The brand is widely known, the hospitality sector is recovering strongly, and the Rs 6,650 crore fresh issue gives the company meaningful capital to pay down debt.

The next step is the Red Herring Prospectus. If Prism hits no regulatory hurdles, the listing window opens in the second half of 2026.