[Update] OYO Parent PRISM Gets Shareholders’ Nod For INR 6,650 Cr IPO

[Update] December 23, 15:15 IST

PRISM, the parent of hospitality unicorn OYO, has received the approval from its shareholders to raise up to INR 6,650 Cr via a fresh issue of equity shares as part of its proposed IPO, according to regulatory filings accessed by Inc42.

The company received the nod at its extraordinary general meeting (EGM) held on December 20. 

Alongside the IPO proposal, shareholders also approved a bonus issue of shares in the ratio of 1:19, that is issuance of one fully paid equity share for every 19 shares held. The company has set December 5, 2025, as the record date to identify the eligible shareholders.

[Original] November 28, 19:15 IST

PRISM, the parent company of OYO, has called an extraordinary general meeting (EGM) to seek shareholders’ approval for raising up to INR 6,650 Cr ($743.2 Mn) via a fresh issue of shares as part of its long due IPO.

Ahead of the IPO, the company has proposed a bonus issue under which shareholders will receive 1 bonus share for every 19 shares held. 

The record date has been set for December 5. Notably, PRISM revised its bonus structure after feedback from investors and shareholders. The bonus shares will be issued from the company’s share premium and reserves.

The move comes weeks after PRISM rolled back its controversial 6,000:1 bonus share plan, which drew widespread criticism for being overly complex and skewed in favour of certain shareholders. 

The backlash began after several investors flagged that the process was difficult to understand and could disadvantage those who missed communication or deadlines. Reports also highlighted that the plan would significantly benefit founder Ritesh Agarwal and investors with large shareholding, whose potential gains became a focal point of the debate.

Amid mounting criticism, PRISM withdrew the proposal and said it would roll out a more transparent, broad-based alternative.

OYO's Funding Snapshot

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PRISM is also seeking shareholders’ approval to increase its authorised share capital to INR 2,491 Cr from INR 2,431 Cr to support the bonus issue and future capital needs linked to the public offering. This change will require an amendment to its Memorandum of Association.

It is pertinent to note that the company has been eyeing a public listing for a few years now. It first filed its DRHP in September 2021, aiming to raise about $1.2 Bn at a valuation of $11 Bn to $12 Bn. However, it postponed this due to market conditions. Later, it pre-filed draft IPO papers confidentially in 2023 but didn’t proceed with the public issue. 

Amid all these, the company strengthened its financials. In FY25, OYO’s net profit rose 172% to INR 623 Cr from INR 229 Cr the previous year. Revenue grew 20% to INR 6,463 Cr from INR 5,388.7 Cr in FY24. 

According to Agarwal, the company is expected to post a net profit of INR 1,100 Cr in FY26.