Business · Companies · 55 mins ago
OYO parent PRISM plans to cut IPO fresh issue to ₹3,350 crore
OYO parent PRISM plans to cut its IPO fresh issue to up to ₹3,350 crore from nearly ₹6,650 crore.
The company says strong cash generation and a better balance sheet have reduced how much new capital it needs.
Most of the proceeds are proposed for repaying or prepaying some borrowings; the earlier plan set aside about ₹5,000 crore for debt repayment.
PRISM plans to repay remaining debt over the next two to three years using cash generated by the business.
Its EBITDA more than doubled to ₹2,630 crore in FY26 from ₹1,080 crore in FY25, and Moody’s changed its outlook to positive while keeping its B2 rating.
Moody’s expects EBITDA to reach about ₹3,000 crore over the next 12 to 18 months as OYO grows and adds storefronts to its platform.
PRISM is moving to the next stage of its proposed IPO after filing an updated draft prospectus.
OYO parent PRISM plans to cut the fresh issue in its proposed IPO to up to ₹3,350 crore from almost ₹6,650 crore.
Sources said strong cash generation and an improving balance sheet have reduced the company’s funding needs.
Most of the revised issue proceeds are proposed to go towards repaying or prepaying certain borrowings.
PRISM plans to repay residual debt over the next two to three years using business cash flows.
Moody’s revised PRISM’s outlook to positive from stable while reaffirming its B2 corporate family rating.
- Who
- PRISM, the parent company of OYO.
- What
- It plans to nearly halve the fresh issue in its proposed IPO, to up to ₹3,350 crore from almost ₹6,650 crore.
- When
- The plan was reported on October 20, 2026.
- Where
- Not stated.
- Why
- Strong cash generation and an improving balance sheet have lowered the company’s funding requirement.
This story does not have two clearly opposing sides.
OYO planned to raise up to ₹6,650 crore through an IPO, with around ₹5,000 crore intended for debt repayment.
Sources said PRISM planned to reduce its proposed IPO fresh issue to up to ₹3,350 crore.
- Revised fresh issue
- Up to ₹3,350 crore
- Earlier planned IPO raise
- Up to ₹6,650 crore
- Earlier debt repayment plan
- Around ₹5,000 crore
- Residual debt repayment period
- Two to three years
- FY26 OYO EBITDA
- ₹2,630 crore, up from ₹1,080 crore in FY25
4 sources
What people are saying
The objective is to raise what the business needs while keeping the capital structure efficient. The plan is to repay the residual debt over the next two to three years through cash flows generated by the business,
We expect OYO's EBITDA (earnings before interest, taxes, depreciation and amortisation) to grow to around Rs 3,000 crore (USD 315 million) over the next 12-18 months as the company continues to scale and add new storefronts to its platform.