The Offer: IPO Structure and Size

The offer documents consists of a ₹6,650 crore fresh issue, with no offer for sale (OFS) component, which means that existing investors - SoftBank’s SVF India Holdings, founder Ritesh Agarwal, Microsoft, Airbnb, Lightspeed Venture Partners, Peak XV Partners - are not selling any stake through the IPO. The entire amount goes into the company itself. The company may also carry out a pre-IPO placement up to ₹1,330 crore, which would proportionately shrink the public issue size if it materialises. 

Of the amount raised, nearly 75% is earmarked to repay and prepay borrowings of PRISM’s subsidiary Oravel Stays Singapore Pvt Ltd. while the remaining will be used for general corporate purposes. 

PRISM is reportedly targeting a more modest $7- 8 billion valuation, with the listing expected in the August - September 2026 window on the BSE and NSE.

The Financial Turnaround

For the nine months ended December 2025, PRISM reported revenue from operations of about ₹6,941 crore, already surpassing the ₹6,253 crore booked in the entirety of FY25. EBITDA more than doubled to roughly ₹2,127 crore from ₹953 crore in FY25, and profit after tax came in at about ₹748 crore against ₹245 crore for all of FY25. 

However, a meaningful share of the reported profit appears to stem from deferred tax credits rather than core operations. Stripping out one-off and tax-related items, the underlying business reportedly moved from a loss of about ₹322 crore in FY25 to an underlying profit of around ₹245 crore in 9M FY26 - a genuine improvement, but less dramatic than the headline number suggests.

Geographic Expansion

India now contributes only about 16% of the company's revenue from operations, down from roughly 25% in FY23. The remaining 84% comes from overseas markets, with North America alone generating over ₹12,000 crore in Gross Booking Value in 9M FY26 - more than half of global GBV - largely on the back of the G6 Hospitality acquisition (Motel 6 and Studio 6). Europe remains a steady contributor at around ₹1,600 - 1,650 crore per period. As of December 2025, the company operates roughly 24,300 hotels, 1,24,700 homes and 1,44,600 listings across more than 35 countries.

Domestically, the company is also pivoting its model: company-operated "CheckIn" premium hotels contributed nearly 49% of India's GBV in 9M FY26, up from just 2.6% in FY24 - a shift away from OYO's traditionally asset-light, franchise-style approach toward greater operational control, which comes with higher costs but potentially stronger margins per property. 

Legal Risks Flagged in the Filing

The UDRHP discloses a long list of legal and structural risks including the 2015 Zostel dispute, a human traffic litigation in the US, legal disputes in the Europe, a promoter-level tax dispute involving SoftBank's SVF India Holdings, CCI antitrust penalty and a pledged promoter stake, all of which could have an adverse impact of the company’s financial condition and/or shareholding structure while also diverting management’s time and attention and the company resources, the DRHP read. 

The Bigger Picture

PRISM's updated filing presents a business that has genuinely improved operationally and diversified geographically since its last IPO attempt, with the current listing framed around deleveraging rather than aggressive expansion. At the same time, the extensive disclosure of legal proceedings signals that regulatory and legal uncertainty remains a material part of the investment case.